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Citizenship by Investment: Sustainable Climate Finance for Governments

In partnership with the Climate Vulnerable Forum, Henley & Partners presents the Citizenship by Investment: Sustainable Climate Finance for Governments report. This pioneering analysis explores how investment migration can serve as a powerful mechanism for mobilizing critical funding to support climate adaptation and resilience initiatives in the world’s most at-risk nations. Read the press release.

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Citizenship by Investment: Sustainable Climate Finance for Governments

Executive summary

The Citizenship by Investment: Sustainable Climate Finance for Governments report, developed in collaboration with the Climate Vulnerable Forum, provides a fresh perspective on how investment migration can address global climate finance shortfalls. At a time when climate-vulnerable nations, including Small Island Developing States (SIDS), face mounting threats, this report outlines innovative financial solutions to support climate resilience.

The report introduces the concept of Investment Migration Resilience Funds (IMRFs), which channel private capital into critical climate adaptation projects without increasing national debt. By strategically aligning these funds with natural capital endowment trusts, governments can secure long-term revenue streams to finance initiatives such as coastal protection, carbon offset programs, and blue economy expansion. IMRFs operate similarly to sovereign wealth funds but are specifically designed to incorporate climate finance, risk management, and sustainable economic development into their governance.

A key case study is the Nauru Economic and Climate Resilience Citizenship Program, which directs private capital towards critical resilience projects, exemplifying how investment migration can transform sovereign debt into sovereign equity. The report emphasizes that investment migration is not only a tool for economic stability but also a strategic framework for national survival, offering a sustainable alternative to traditional debt-based climate finance models.

Featured essays

Traditionally, investment migration has been about individuals seeking economic stability. But what if we expanded that concept? What if nations themselves became investment destinations — places where global citizens, businesses, and investors could build, contribute, and thrive?

Sara Jane Ahmed

Managing Director and V20 Finance Advisor, Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) Secretariat
At Henley & Partners, we turn investments in residence and citizenship into lifelines for vulnerable countries, fostering thriving communities and ecosystems. Through impact funds and strategic partnerships, we support nations in forging futures where survival is not just a hope, but a funded reality.

Dr. Juerg Steffen

Chief Executive Officer of Henley & Partners

Unlocking investment migration for the blue economy

0.3 trillion USD

Estimated annual value of the global ocean economy in market goods and services

23 %

Annual year-on-year increase in value of blue bonds since their launch in 2014

11 %

Percentage of SIDS coral reefs threatened by the climate crisis

Sources: UNDP: undp.org/publications/oceanpromise; CBI: climatebonds.net/resources/reports/global-state-market-report-2023; UN: un.org/ohrlls/news/small-island-developing-states-numbers-biodiversity-oceans-2017

The Investment Migration Climate-Resilience Framework

The Investment Migration Climate-Resilience Framework
Governments can use IMRFs to transparently channel investment migration proceeds into climate adaptation, disaster recovery, and economic diversification. Henley & Partners assists in designing IMRFs by establishing oversight bodies, aligning investments with national plans, and ensuring effective fund use. This enables nations to move from reactive borrowing to proactive resilience-building, securing immediate recovery funds while financing long-term projects.
SIDS can monetize natural assets like carbon-absorbing ecosystems and renewable energy through Natural Capital Endowment Trusts. Henley & Partners can assist in creating these trusts, merging investment migration revenues with carbon credits, eco-tourism efforts, and blue economy projects.
With over 70% of SIDS exceeding sustainable debt levels, investment migration can help ease sovereign debt and fund climate resilience. Henley & Partners advises linking these programs to debt-for-nature exchanges and climate bonds.
Transparent measurement systems aligned with the UN SDGs are key to investor trust in investment migration programs. Henley & Partners helps governments assess the impact of projects funded through investment migration programs, ensuring accountability and attracting impact-driven investors.

Citizenship by Investment: Sustainable Climate Finance for Governments was published on 18 March 2025.

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