The Vietnamese government, the International Fund for Agricultural Development (IFAD) and the Green Climate Fund (GCF) have combined for a $102.4 million investment designed to protect forests and boost rural incomes in Vietnam’s coffee lands.
The initiative, known as RECAF, involves blended financing, including a $32.4 million IFAD loan, a $35 million GCF grant and $35 million in domestic co-financing, according to IFAD, an agency of the United Nations dedicated to eradicating rural poverty.
IFAD said the project will be implemented by Vietnam’s Ministry of Agriculture and Environment with provincial authorities in Dak Lak, Gia Lai, Lam Dong and Khanh Hoa.
IFAD news release photo.
The participating agencies said that over the next six years, the initiative is designed to reduce some 6.68 million metric tons of greenhouse gas emissions, improve 145,000 existing hectares of agroforestry land and protect approximately 500,000 hectares of “high-value” natural forest.
“RECAF reflects Vietnam’s leadership in linking climate action with rural development,” Frew Behabtu, IFAD country director for Vietnam, said in an IFAD announcement. “IFAD is proud to support this project, which places farmers and forest communities at the center of solutions that build resilience, protect natural resources and create sustainable economic opportunities.”
Vietnam remains the world’s largest producer of robusta, accounting for more than 40% of global robusta output. Last year, Vietnam reported approximately $8.3 billion in export earnings from coffee, according to the latest USDA estimates.
Beyond the broader environmental and economic goals, the RECAF project comes as actors throughout the coffee chain prepare for implementation of the EU deforestation-free supply chain law (EUDR), which is now scheduled to take effect at the end of 2026.
The Green Climate Fund’s FP250 project page says RECAF is designed to unlock investment in forest conservation and “deforestation-free value chains” for commodities such as coffee.
According to IFAD, the RECAF initiative also has specific focuses on women, youth and ethnic minorities in Vietnam’s coffee lands, while “ensuring that those most affected by climate change are actively engaged and benefit from project activities.”
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