Nauru sells first passports to help fund relocations as sea levels rise

Australia Broadcast Center

16 hours ago

Australia's Pacific neighbour, Nauru, has sold its first passports as part of a program raising funds for the relocation of residents affected by rising sea levels.
The tiny island nation launched the scheme in February but it only approved its first six applicants this week, nearly half a year after it started.
Selling for at least $US105,000 ($160,000), Nauru's "golden passports" offer citizenship by investment and the country claims it would enable visa-free entry into 89 countries.
These are said to include the United Kingdom, Hong Kong, Singapore and the United Arab Emirates.
Edward Clark, the head of Nauru's Economic and Climate Resilience Citizenship Program, told ABC Pacific Beat that a "relatively well-known" German family was among the successful applicants.
He said, altogether, the family of four paid around $US250,000 ($380,000), with $US140,000 of these funds to go toward climate resilience projects in Nauru.
"They had a long-standing family business in Germany, they sold it recently, and had relocated to Dubai," Mr Clark said.
"Our understanding is that they're concerned about some of the volatility in Eastern Europe and the impact that might have on them as a family.
Despite the slow start, Mr Clark said there were around 20 other applications being processed.
"We are a new program so we are working to build credibility and awareness in the market," he said.
"We are starting to build interest and work through the existing pipeline of applications ... and we have many others we know are coming."
Nauru President David Adeang was upbeat about the latest milestone.
"We welcome our new citizens whose investment will assist Nauru to secure a sustainable and prosperous future for generations to come," he told AFP on Thursday.
Mr Clark said the target for the passport program is to generate $60 million a year.
Nauru is particularly vulnerable to the impacts of climate change, with scientists measuring sea levels rising 1.5 times faster than global averages.
Unusually pure phosphate deposits — a key ingredient in fertiliser — once made Nauru one of the wealthiest places, per capita, on the planet.
But these supplies have long dried up and researchers estimate 80 per cent of Nauru has become uninhabitable due to mining.
What little land Nauru has left is threatened by encroaching tides, which local authorities believe will force 90 per cent of its residents to relocate to higher ground.
The first phase of this mass relocation is estimated to cost more than $US60 million.
While the island has pinned its hopes on the new passport program to foot the bill, there are fears the scheme could be ripe for exploitation.
Mr Clark told AFP one application has already been withdrawn after officials flagged "adverse findings" during background checks.
"The application would have been rejected had it not been withdrawn," he said.
Meanwhile, Mr Clark told the ABC the government conducts an "in-depth" due diligence process involving the financial intelligence unit, police, and third-party checks.
"This is important to uphold and maintain the reputation for the country ... and for maintaining the integrity of the Nauru passport," he said.
A previous Nauru attempt to sell passports ended in disaster.
In 2003, Nauru officials sold citizenship to Al-Qaeda members who were later arrested in Asia.
When asked how successful applicants could be sure their funds went toward economic and climate resilience projects, Mr Clark said it would appear in government records.
"Because the program is at an early stage, the funds will just be co-mingled into the government treasury accounts and will be reported on through that mechanism," he said.
"We are in discussions with Nauru government to set up a framework to make sure that those funds are allocated toward specific projects or initiatives if the program starts to generate revenue that is above the $10 million threshold."
ABC/AFP