A new report by a Guam-based security think tank says growing U.S. military activity in Palau is eroding environmental protections and leaving Palauans sidelined in decisions that affect their land and sovereignty — concerns that have taken on fresh urgency as Palau’s president makes a historic first State visit to New Zealand.
The Pacific Centre for Island Security’s Micronesia Security Outlook 2025 singles out accelerated militarisation in Palau and warns the guardrails built into the Compact of Free Association are “rendered ineffective” by the speed and scale of new projects. The Palau chapter was written by Jodean Remengesau, director of the Bureau of Agriculture in Palau’s Ministry of Agriculture, Fisheries and the Environment, who argues the U.S. military “had missed and fell short of fulfilling its duties and responsibilities under the compact of the U.S with Palau.”
The report details alleged breaches of Palauan environmental law tied to U.S. projects. It cites the clearing of 271,807 square metres of land on Angaur Island for a tactical mobile over-the-horizon radar site without an environmental impact assessment or the required earthmoving permits and community consultations. Remengesau recounts that shredded tree debris from the clearing, which risked inviting invasive coconut rhinoceros beetles, was later dumped on residents’ yards in a rushed attempt to manage the problem.
Those actions prompted legal pushback: in 2023 Angaur Governor Steven Salii filed a lawsuit naming Palau’s central government, the Palau Environmental Quality Protection Board, the U.S. government and its military contractors for alleged violations of Palau’s environmental laws and compact agreements. The case remains a focal point for critics who say the compact’s environmental stipulations have not been enforced.
The report recognises the geopolitical pressures driving the build-up: under a renegotiated compact that took effect with a new funding cycle beginning 1 October 2023, Washington pledged an US$890-million package to Palau over 20 years and retains responsibility for Palau’s defence. With a large share of Palau’s national budget coming from compact funds and foreign aid, the document warns the island is likely to see increased military use of its territory.
A specific project flagged in the report is a US$118-million radar system the U.S. military is expected to bring online this year. The report says what was initially presented to Palauans as a single, jointly used shoreline radar installation later emerged as two separate systems — a development critics say raises fresh questions about transparency and the scope of U.S. military operations on Palauan soil.
Palau’s first-ever State visit to New Zealand by President Whipps — occurring amid these revelations — adds a diplomatic dimension to the debate. The trip marks a milestone in Palau’s outreach to Pacific and regional partners as concerns about environmental protection, consultation and sovereignty converge with broader U.S.-China strategic competition in the region.
The Pacific Centre’s findings are likely to intensify scrutiny of how the Compact’s environmental and sovereignty safeguards are implemented, and keep legal and political disputes over Angaur and other sites on the regional agenda as radar installations move toward operational status.
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