Unconventional strategy for climate resilience
The Caribbean island of Dominica is on a bold path to becoming the world’s most climate-resilient nation by selling citizenship to affluent individuals, a move that has become a critical funding source for the country’s recovery efforts after the devastation caused by Hurricane Maria in 2017. Rather than relying solely on international aid or incurring significant debt, the island has turned to its Citizenship by Investment (CBI) program to fund essential infrastructure and climate resilience projects.
$200,000 price tag for citizenship
The price for Dominican citizenship currently stands at a minimum of $200,000, making it one of the most affordable options globally for those seeking an alternative nationality. Many buyers of Dominican passports hail from regions like China and the Middle East, seeking greater global mobility. The funds raised through this program have been directed toward building new homes, healthcare clinics, and other critical infrastructure for the island’s population of 71,000.
Climate resilience through self-reliant financing
Dominica’s Citizenship by Investment program was first introduced in the 1990s, but its role expanded significantly in the wake of Hurricane Maria, which inflicted damage equivalent to more than twice the country’s gross domestic product (GDP). Prime Minister Roosevelt Skerrit pledged to “build back better,” and the nation has since funneled the revenue from citizenship sales into its climate resilience strategy. Finance Minister Irving McIntyre underscored the importance of self-reliant funding to deal with the impacts of climate change.
“This programme means a lot to us,” McIntyre told The Washington Post. “We realized we had to get a self-dependent form of financing to deal with climate change.”
Investing in infrastructure and housing
Dominica’s government has used the CBI funds to build around 2,000 homes in areas designed to be more resistant to hurricanes and other climate-related disasters. The country is also investing heavily in infrastructure capable of withstanding future storms, a priority given the increasing severity and frequency of hurricanes in the region, which officials blame on emissions from wealthier nations.
Criticism and concerns over transparency
Despite the program’s financial success, it has attracted scrutiny over issues of transparency and security. The European Union and other international bodies have raised concerns that the fast-tracked nature of citizenship approvals may lead to inadequate background checks on applicants. Critics argue that such programs could allow individuals with questionable backgrounds to acquire citizenship without proper scrutiny, raising security risks.
Rising demand despite challenges
Nevertheless, the demand for Dominican passports remains strong. The island’s appeal lies in offering global access to those seeking second citizenship, even though its remote location and limited direct flight options to the U.S. present logistical challenges. However, the rapid expansion of the program has led to increased calls for stricter oversight and greater accountability in how the funds are managed.
A model for climate financing?
Dominica’s approach has sparked debate, but it also offers a unique model for small nations grappling with the outsized impacts of climate change. The island’s proactive stance on building climate resilience through innovative financing could serve as a blueprint for other vulnerable nations seeking ways to adapt and thrive in the face of future climate risks.