The Pacific Island nation of Nauru is set to sell citizenship in a contentious “golden passport” initiative aimed at funding its retreat from rising sea levels, as the effects of climate change escalate. President David Adeang announced on Tuesday that the government will offer passports to foreigners for US$105,000 each to secure essential financing for a mass relocation of its population inland. This process is in response to the urgent need for climate adaptation, attributed to human-induced changes that are causing sea levels to rise more rapidly than global averages.
With a small population of around 13,000 and limited land area of just 21 square kilometers (8 square miles), Nauru faces significant challenges. Previous reliance on phosphate mining has left approximately 80% of its land uninhabitable, and the remaining viable land is increasingly threatened by encroaching tides. The government believes that about 90% of the population will ultimately need to move to higher ground. Edward Clark, overseeing the Economic and Climate Resilience Citizenship Programme, indicated that the first phase of this relocation could cost over US$60 million, making the citizenship-by-investment program a critical source of funding, with projected revenues increasing over time.
Despite the potential for generating significant revenue—up to US$43 million within a few years—the initiative has raised concerns about the risks of exploitation and criminal activity associated with such citizenship schemes. Past attempts by Nauru to sell citizenship ended unfavorably, including incidents involving al-Qaida members. Clark assured that rigorous vetting processes will be implemented to mitigate these risks, emphasizing that the program is not merely about acquiring a passport but about fostering a community building innovative solutions for global challenges.
The new program comes amid a backdrop of increasing climate vulnerability for small island nations like Nauru, where traditional funding avenues for adaptation have proven inadequate. The Australian Lowy Institute notes that over 60 countries provide some form of citizenship in exchange for investment, with Pacific nations like Vanuatu and Tonga conducting similar initiatives.
As Nauru embarks on this bold new economic approach, there is an underlying hope that it will not only address immediate financial needs for climate adaptation but also pave the way for a more sustainable and resilient future for its residents. By actively pursuing these innovative financial routes, Nauru sets a potential example for other nations grappling with similar challenges in the face of climate change.
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