Pacific microstate sells first passports to fund climate action

Pacific microstate Nauru has said it hopes to drum up more than US$5 million in the "climate resilience citizenship" programme's first year, which would equate to 66 "golden passports" sold at US$105,000 each.

Almost six months after the scheme opened in February, Nauru has so far approved six applications -- covering two families and four individuals.

But Edward Clark, who runs the country's passport programme, said the number of approvals to date does not reflect interest levels.

"We commenced receiving credible enquiries from the start but were not in a position immediately to commence the processing," he told AFP.

"We are very pleased with the progress of the program and are seeing increasing demand.

"As with any large project, it takes time, and we have intentionally not rushed the process, but have been constantly reviewing progress and evaluating procedures."

Nauru believes the passports could eventually generate $43 million -– or about 500 successful applicants -- which would account for almost 20 percent of projected government revenue.

Among the first batch of climate passports approved was an unnamed German family of four living in Dubai, said Clark, touting the "major milestone".

"They were looking for a second citizenship to provide them with a Plan B given the current global political volatility," he said.

"We welcome our new citizens, whose investment will assist Nauru to secure a sustainable and prosperous future for generations to come," President David Adeang told AFP.

The Nauru passport provides visa-free entry into more than 80 countries or territories.

'Protect the reputation'

More than 60 different nations offer some form of migration for investment schemes, Australia's Lowy Institute has found.

Pacific nations such as Vanuatu, Samoa and Tonga have all dabbled in selling passports. But there are concerns that these programmes could be ripe for exploitation.

A previous Nauru attempt to sell passports ended in disaster when, in 2003, officials sold citizenship to Al-Qaeda members who were later arrested in Asia.

Clark said in designing the new passport programme, officials adapted best practices from other countries.

"We have also looked at other industries, such as the financial services sector, which is heavily regulated, and adopted certain practices which strengthen the integrity of the program," he said.

"We will continue to review, refine and adapt the process to ensure we remain at the forefront of compliance in order to protect the reputation of Nauru and the integrity of the passport and the programme".

Clark added that one application had been withdrawn after officials flagged "adverse findings" during background checks.

The island republic of Nauru sits on a small plateau of phosphate rock in the sparsely populated South Pacific.

With a total landmass of just 21 square kilometres (eight square miles), it is one of the world's smallest nations.

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 since dried up, and researchers today estimate 80 percent of Nauru has been rendered uninhabitable by mining.

What little land Nauru has left is threatened by encroaching tides. Scientists have measured sea levels rising 1.5 times faster than global averages.