by Sebastien GOULARD
At the beginning of 2024, the archipelago of Vanuatu in Melanesia launched a new citizenship programme for foreign investors who choose to support the environmental transition in this Pacific country.
Several countries have implemented programmes aimed at foreign investors that allow them to obtain a national passport. These golden visas are generally offered on the condition of a minimum investment, usually quite substantial, in the host nation. For example, in Portugal, it is necessary to invest a minimum of 500,000 euros in the country. However, several states aim to put an end to these measures. These programmes are frequently criticized, for example, for contributing to real estate overheating, such as in Lisbon or Porto, as investors primarily target apartments that are often rented out on platforms like Airbnb and thus do not directly benefit the locals. Within the European Union, countries that have implemented these programmes are also critiqued by other member states, which complain that these golden visas allow access to the entire Schengen Area, sometimes for investors of questionable backgrounds, such as oligarchs close to the Russian President.
Vanuatu has also faced this problem. Like other Pacific Island states, Vanuatu offered its passport to unsavoury individuals in exchange for money. An investigation by The Guardian published in 2021 revealed that more than 2,000 foreigners, including fugitives, criminals, and North Korean dignitaries, had benefitted from this golden visa programme, which allowed them to travel freely to the United Kingdom and across the European Union using a Vanuatu passport, while taking advantage of Vanuatu’s tax haven status. Since its launch in 2017, this programme has generated almost 116 million dollars for this state of less than 300,000 inhabitants.
Faced with the extent of the scandal, Vanuatu decided to diversify its passport issuance programmes by launching a new option with a strong environmental focus. To qualify for a passport from this country, foreigners have the option to either donate to the government of Vanuatu, invest in real estate on the archipelago, or support the country’s efforts in its energy transition.
In the latest part of the programme, foreigners must pay $165,000 to Vanuatu (for a family of up to four people), including an investment of $50,000 in the Coconut Oil (CNO) Future Fund to boost the growth of coconut oil; the goal is to replace the use of fossil fuels with this product.This new programme is part of the implementation of Vanuatu’s 2050 Low Emissions Development Strategy (LEDS), which was adopted in 2022. This strategy aims to develop Vanuatu’s economy while preserving its environment by reducing emissions in the archipelago’s main sectors of activity. In terms of transportation, Vanuatu seeks to accelerate the development of more energy-efficient vehicles. Specifically, regarding energy production, the aim is to expand access to electricity on all islands while increasing the use of sustainable energy sources and reducing the reliance on wood for cooking and diesel-powered generators. In this strategy, which also addresses the agricultural sector, one of the approaches is to transform grazing areas into mixed-use zones for both grazing and copra production. Vanuatu authorities are aware that the development of copra oil must not come at the expense of primary forests, which are already impacted by local wood use. Therefore, new plantations are expected to be established in areas already dedicated to extensive livestock farming. To promote the development of copra oil, the authorities are counting on investments in this new sector from foreigners who wish to obtain citizenship of Vanuatu.
Vanuatu is one of the countries most committed to environmental preservation and the fight against climate change. Faced with rising sea levels, Vanuatu is already evacuating some villages and relocating part of its population to safer areas. Climate change is also generating more violent and destructive cyclones, such as those in October 2023 that caused significant damage in the northern part of the archipelago.
In March 2023, Vanuatu presented a resolution to the United Nations promoting climate justice, allowing the United Nations General Assembly to request an opinion from the International Court of Justice on the legal consequences that states responsible for causing climate damage to other countries should face.
Vanuatu is also a less developed state that suffers from high debt to foreign banks, particularly Chinese ones, and is largely dependent on cooperation aid. While this assistance is, of course, welcome, Port Vila is also trying to increase its own resources. Although this new golden visa programme cannot fully solve the country’s debt issues, it is at least a good marketing tactic that will allow the international community to better understand Vanuatu’s strategy for accelerating its energy transition.
Author: Dr. Sebastien Goulard is the founder and editor-in-chief of Global Connectivities.
