Nauru Sells Citizenship to Fund Climate Adaptation

Nauru, a Pacific island nation, is selling citizenship to raise funds to relocate its residents inland due to the risks posed by rising sea levels. Most of its 13,000 population and infrastructure are in the coastal area, and the government plans mass inland relocation to move them away from the threats of flooding.

Nauru is selling passports to foreigners for US $105,000. The state claims these passports will grant visa-free entry to 89 countries, including the United Kingdom, UAE, Hong Kong, and Ireland.

Some fear that the scheme will be exploited by criminals who wish to flee their countries.

A climate adaptation imperative

“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 AFP. “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” (Nauru sells, 2025).

Edward Clark, who runs Nauru’s new Economic and Climate Resilience Citizenship Program, says that the existing climate funding efforts are “not sufficient” to address the challenge.

Climate change challenges in Nauru

Nauru is a tiny island country in Micronesia. Its remoteness, location in the South Pacific approximately 2,900 kilometres northeast of Australia, and size, with only a total land area of 22 km2 (2200 ha), make it highly vulnerable to climate change and extreme natural disasters.  

The small island nation of Nauru is experiencing warming and is projected to increase temperatures throughout the 21st century by 0.9°C to 3.0°C, depending on global emissions rates. The sea level near Nauru is rising faster than the global average and is expected to continue increasing over the century. Most of Nauru’s population, along with critical infrastructure, is located on the coast, making it vulnerable to the risks associated with rising sea levels.

Nauru has limited groundwater and lacks rivers or streams, so its freshwater sources are scarce. As a result, the island heavily relies on rainwater collection. Rising sea levels and storm surges expose these limited freshwater sources to pollution.

The island consists of mineral deposits, largely rock phosphate. Over the past century, phosphate mining has significantly impacted the landscape and economy of Nauru. Phosphate is a key fertiliser ingredient that once made Nauru wealthy, but this mineral has dried up, and mining has degraded the tiny island nation. Researchers estimate that 80% of the island is now uninhabited due to mining.

Selling Nauru citizenship an “innovation”

Clark hails Nauru’s decision to sell citizenship as a kind of “innovation”.

“It is well known that developing climate-vulnerable countries are disproportionately affected by climate change, and there is therefore an urgent need to ensure they disproportionately benefit from climate innovation,” he said.

Selling citizenship is not exclusive to Nauru. According to Australia’s Lowy Institute, Other Pacific nations, including Vanuatu, Samoa, and Tonga, have also sold passports.

Nauru expects to gain US$5.7 million in the first year of implementing the scheme, representing around 66 successful applications. This figure is expected to increase to US$43 million or about 500 successful applications, equivalent to 20% of the island nation’s GDP.

While Nauru has a higher elevation than some Pacific Island nations, long-term sea-level rise still threatens its coastlines, livelihoods, and infrastructure. Climate change causes coral bleaching, which poses a serious risk to Nauru’s ecology and economy. Near-shore fisheries may decline, and the future of deep-sea fishing is uncertain, making the island nation more economically vulnerable.

Nauru’s decision to sell citizenship is a bold move in response to the pressing threat of climate change. This initiative could provide much-needed funds to support relocating its people to safer inland areas.

However, it also raises concerns about potential misuse, particularly by criminals who might exploit this system. To mitigate these risks, Nauru should ensure that passports are granted only to like-minded investors and establish a rigorous screening and vetting process for those seeking citizenship.

Whether this citizenship scheme will achieve its goals remains to be seen. Nonetheless, Nauru’s situation sheds light on the vulnerabilities that small island nations face in the battle against climate change, highlighting the urgent need for innovative climate adaptation strategies to adapt to environmental and weather-related disasters.