Nauru, the small Pacific island nation, is facing existential challenges due to climate change, and it has taken a groundbreaking step to address these threats. President David Adeang announced on Tuesday the launch of a controversial citizenship-by-investment program aimed at raising funds for the country's planned retreat from rising sea levels.
The low-lying island nation, home to approximately 13,000 residents, is preparing to relocate inland as climate change-induced sea level rise threatens its very existence, eroding the coastal areas where much of the population resides. To finance this mass relocation, Nauru will offer passports to foreign nationals for US$105,000 each. The president stated, "For Nauru, it is not just about adapting to climate change, but about securing a sustainable and prosperous future for generations to come,” as reported by AFP.
The passport package promises buyers visa-free travel to 89 countries, including the United Kingdom and Hong Kong, which presents it as a compelling offer. Edward Clark, who oversees the Economic and Climate Resilience Citizenship Program, elaborated on the financial rationale, explaining, "Debt financing places an undue burden on future generations and there is not enough aid” available to meet Nauru’s urgent needs.
Initially, Nauru expects the program to generate approximately US$5.7 million by securing about 66 successful applications. This figure is predicted to rise significantly, with hopes of reaching around US$43 million through 500 applications, which would contribute to nearly 20% of the nation’s total revenue.
With Nauru’s shoreline diminishing, it is estimated up to 90% of the population may eventually need to move to safer ground, making the first phase of relocation cost around US$60 million. The urgency of the matter is underscored by rising sea levels measured at 1.5 times faster than the global average, jeopardizing the island’s sustainability.
Clark described the citizenship initiative as “a kind of innovation” for developing nations severely affected by climate change, emphasizing the need for such nations to adapt creatively to environmental crises. His sentiment is fueled by the belief of many experts and leaders within the region. According to Clark, countries like Nauru "have both a need and a right to be prosperous."
Despite the optimistic outlook, concerns persist over the potential misuse of such citizenship schemes. While they are seen as necessary financial solutions, the risk of exploitation is significant. Research from Australia's Lowy Institute highlights over 60 countries globally utilizing similar programs, such as Samoa and Vanuatu, but warns of the criminal undertones these schemes can sometimes attract.
Previously, Nauru's attempt to sell passports backfired dramatically when citizens were sold to al-Qaida members, leading to international scandal and arrests. Clark assures the current initiative will be markedly different, stating, “This time Nauru would only offer passports to like-minded investors who pass the strictest and most thorough due diligence procedures.”
The Australian government has previously offered Nauru millions to house asylum seekers, but international scrutiny grew after numerous high-profile incidents involving detainee deaths and mental health crises under their care—raising more alarms about the nation’s governance.
Moving forward, Nauru is at the crest of this pivotal moment, attempting to secure both its immediate survival and longer-term sustainability through innovative financial instruments. President Adeang’s administration is banking on the hope this new citizenship program will provide much-needed resources to transform the nation sustainably, even as criticism and concern looms over the method.