Nauru Launches Controversial Citizenship Program Amid Rising Sea Levels

YAREN, NAURU — The Pacific island nation of Nauru has announced a controversial citizenship-for-investment program aimed at raising funds for a mass inland relocation due to rising sea levels. President David Adeang unveiled the ‘golden passport’ scheme on Tuesday, amidst growing urgency as climate financing dwindles.

Nauru, with a population of approximately 13,000, plans to move residents away from fertile coastal areas being eroded by advancing tides, which are rising at 1.5 times the global average, threatening the country’s future. This new program will sell passports to foreign investors for $105,000 each, a decision met with both hope and concern regarding potential criminal exploitation.

“For Nauru, it is not just about adapting to climate change, but about securing a sustainable and prosperous future for generations to come,” Adeang told an AFP reporter. “We are ready for the journey ahead.”

Nauru, one of the world’s smallest nations, occupies just 21 square kilometers (8 square miles) and is situated on a plateau of phosphate rock in the South Pacific. Historically wealthy due to its rich phosphate deposits, Nauru has seen its resources dwindle, leading to approximately 80% of its land becoming uninhabitable due to mining.

Nauru’s Economic and Climate Resilience Citizenship Program is projected to generate $5.7 million in its first year, assuming about 66 successful applications. As more applicants are anticipated, officials hope the revenue could rise to $43 million in the coming years, potentially covering nearly 20% of government income.

Edward Clark, who oversees the program, emphasized the innovative nature of the initiative. “Debt financing places an undue burden on future generations and there is not enough aid,” he stated. “Developing climate-vulnerable countries need to ensure they benefit from climate innovation.”

The passports promise visa-free travel to 89 countries, including the United Kingdom, Ireland, the United Arab Emirates, and Hong Kong. However, the scheme raises questions about the regulation and oversight of such programs among vulnerable nations.

Critics have pointed to the risks of criminal exploitation associated with citizenship sales. Henrietta McNeill, a research fellow at the Australian National University, cautioned that such schemes can allow criminals to exploit the systems for money laundering and evading law enforcement.

Nauru has faced backlash in the past, particularly from a 2003 incident where officials sold citizenship to al-Qaida members, who were later apprehended. This time, Clark asserted that applicants will only be accepted after undergoing “the strictest and most thorough due diligence procedures.”

Beyond sustainability, the government anticipates that as many as 90% of the population may need to relocate due to climate threats, with initial costs for infrastructure and new housing projected to exceed $60 million.

Despite past controversies and challenges, the government hopes this unique approach can pave the way for other climate-affected nations. “This program isn’t just a passport; it’s about joining a community dedicated to pioneering solutions for global challenges,” Clark concluded.