The Pacific island nation of Nauru has unveiled a controversial plan to sell citizenship to foreign investors, aiming to generate funds for an urgent relocation effort.
Facing an existential threat from rising sea levels, the government is seeking alternative financial solutions as traditional climate aid and funding prove insufficient.
This article appeared on The Guardian, reporting on Nauru’s struggle to adapt as its population is forced to move inland.
A Nation Racing Against Climate Change
Nauru is one of the world’s smallest nations, both in land area and population, yet it faces an outsized battle against climate change. Scientists have observed that sea levels around the island are rising faster than the global average, threatening the country’s already limited habitable land.
Decades of phosphate mining, once the backbone of Nauru’s economy, have left 80% of the island uninhabitable. Now, with the coastal areas increasingly eroded by the ocean, the government has outlined plans for mass inland relocation, affecting nearly 90% of the population.
However, with climate aid falling short, Nauru has turned to a citizenship-for-sale programme to cover the costs. Under the scheme, foreign nationals can obtain Nauruan citizenship in exchange for a financial contribution.
The government expects the initiative to generate $5.7 million in its first year, with hopes of reaching $43 million annually, accounting for almost 20% of its total revenue.
The Promise of Economic Resilience
Nauru’s Economic and Climate Resilience Citizenship Program offers a passport that allows visa-free access to 89 countries, including the United Kingdom, Ireland, the UAE, and Hong Kong. According to programme director Edward Clark, the initiative is a strategic move to secure a sustainable financial future.
“Debt financing places an undue burden on future generations and there is not enough aid,” he stated.
Government officials argue that the scheme is more than a simple exchange of money for citizenship.
“For Nauru it is not just about adapting to climate change, but about securing a sustainable and prosperous future for generations to come,” he said. Adding that “This is about more than survival. It is about ensuring future generations have a safe, resilient and sustainable home. We are ready for the journey ahead.”
Past Failures and Security Concerns
Nauru is not new to citizenship-for-sale schemes, and its previous attempts ended in controversy. In 2003, the country’s passport programme was exploited by criminal networks, with citizenships granted to individuals linked to Al-Qaeda, leading to arrests in Asia.
Nauru joins more than 60 countries that offer some form of citizenship-by-investment, but its case is distinct due to the climate-driven urgency behind the initiative.
Similar schemes in other Pacific nations, such as Vanuatu, have also raised concerns over money laundering and misuse by international criminals, prompting sanctions from the EU and UK.
While Nauru insists that its new initiative will include rigorous background checks and due diligence, past experiences suggest that even with safeguards, such programmes remain vulnerable to abuse.
