The Pacific island nation of Nauru is embarking on a controversial initiative to sell citizenship through a “golden passport” program, with the goal of funding its relocation efforts due to rising sea levels exacerbated by climate change. President David Adeang announced this plan on Tuesday, stating that the government will offer passports to foreign investors for US$105,000 each. This initiative is aimed at generating necessary funds for moving the population inland, as Nauru faces urgent climate adaptation needs.
With a population of approximately 13,000 and a mere 21 square kilometers in land area, Nauru is encountering significant challenges due to its geographical vulnerabilities. The country has suffered from extensive phosphate mining, leaving 80% of its land unsuitable for habitation, while the remaining usable land is increasingly at risk from rising tides. The government estimates that about 90% of its residents will eventually need to relocate to safer areas. Edward Clark, who is overseeing the Economic and Climate Resilience Citizenship Programme, indicated that the initial phase of relocation may exceed US$60 million, positioning the citizenship-by-investment program as a vital funding source, with anticipated revenues expected to grow over time.
While the potential financial benefits are substantial—projected to reach up to US$43 million within the next few years—the initiative has also sparked concerns regarding the possibility of exploitation and criminal activity linked to citizenship schemes. Nauru’s previous attempts to sell citizenship have resulted in negative consequences, including incidents involving members of al-Qaida. To address these concerns, Clark has assured that stringent vetting processes will be implemented to minimize risks, stressing that the program is not solely about obtaining passports but is also about building a community that can innovate and tackle global challenges.
This initiative comes as small island nations like Nauru continue to face heightened climate vulnerability, with conventional funding methods for adaptation falling short. Notably, over 60 countries around the world have adopted some form of investment-based citizenship, including other Pacific nations such as Vanuatu and Tonga, which have initiated similar programs.
Nauru’s ambitious approach presents a hopeful perspective on addressing immediate financial needs for climate adaptation, while also striving for a resilient and sustainable future for its inhabitants. By pursuing these creative financial strategies, Nauru may set an example for other nations grappling with comparable challenges posed by climate change.
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