Island Nation Sells Citizenship to Fund Climate Action

A beach in Ewa, Nauru, captured on September 2, 2018. The tiny Pacific island nation is selling passports to fund climate resilience efforts as it faces the growing threat of rising sea levels. Getty Images

Nauru, one of the world’s smallest countries, has launched a “golden passport” program, offering citizenship for $105,000 to raise funds for climate adaptation. The initiative aims to finance the relocation of nearly 90% of its 12,500 residents to higher ground, safeguarding them from rising sea levels and extreme weather events.

Situated in the southwest Pacific, Nauru spans just 8 square miles and faces an existential threat due to climate change. The low-lying island has already seen parts of its coastline eroded by storm surges and rising sea levels, with residents losing homes to king tides. Scientists warn that without immediate action, much of Nauru could become uninhabitable within decades.

With limited resources, the island struggles to fund necessary climate resilience projects. “While the world debates climate action, we must take proactive steps to secure our nation’s future,” Nauru’s President David Adeang told CNN.

The passport scheme is expected to generate $5.6 million in its first year, with hopes of scaling up to $42 million annually. The government aims to use this revenue to build infrastructure on higher ground and create a sustainable future for its citizens.

The initiative is not without controversy. Historically, similar programs have been linked to money laundering and criminal activities. In the 1990s, Nauru sold passports under a different scheme, leading to scandals, including allegations that terrorists used Nauruan passports to evade security checks.

To prevent misuse, the current program includes stringent vetting, barring applicants from high-risk countries like Russia and North Korea. Additionally, international organizations, including the World Bank, will oversee the process to ensure transparency.

Nauru’s economic hardships stem from its past reliance on phosphate mining, which left 80% of the island uninhabitable. When the phosphate reserves depleted, the country sought alternative revenue sources, including serving as an offshore detention center for refugees bound for Australia—a program largely scaled down in recent years.

With traditional economic avenues shrinking, the citizenship-for-sale initiative reflects the growing desperation of climate-vulnerable nations to secure funds for survival. Other small island states, such as Dominica in the Caribbean, have also turned to selling passports to finance climate resilience projects.

Experts suggest that if managed responsibly, the program could set a precedent for climate finance in vulnerable nations. “Selling citizenship has the potential to make an enormous economic impact for micro-states like Nauru,” said Kirstin Surak, a political sociology professor at the London School of Economics. However, she stressed the need for transparency to ensure that funds are directed toward sustainable development.

As wealthier nations struggle to meet climate finance commitments, countries like Nauru are being forced to find unconventional solutions. “This highlights the challenges faced by climate-vulnerable nations, which are often left to fend for themselves,” said Edward Clark, CEO of Nauru’s Economic and Climate Resilience Citizenship Program.

While controversial, Nauru’s initiative underscores a harsh reality: small island nations cannot wait for global consensus—they must act now to secure their future.