Apr 29 / Dominic Volek

Investment Migration Is a Sustainable Win–Win

Dominic Volek, Group Head of Private Clients, Henley & Partners

In an increasingly unpredictable world, the desire and necessity to secure greater global access and
optionality has skyrocketed. As noted in theHenley Wealth and Sustainability Report, more and more clients and governments are seeing investment migration as a mechanism to mitigate sustainability risks.

A resilience-boosting tool
Investors and their wealth managers are concerned about sustainability, and climate change in particular
is an increasingly significant driver in decision making and in preparing for the future.
High- and ultra-high-net-worth investors from emerging and advanced economies alike are seeking out
alternative business, career, educational, and lifestyle opportunities on a global scale, enhancing their
options and transcending the limitations of their countries of origin to improve the resilience of their
portfolios and ensure physical and financial longevity.
Acquiring alternative residence and/or citizenship by participating in reputable programs enables greater
flexibility and participation in the world’s leading economies, as well as increased optionality, which is
fast becoming an essential part of any family’s insurance policy for the 21st century. The more jurisdictions a family can access, the more diversified its assets, and the lower its exposure to country-specific, regional, and global volatility.

The Henley Wealth and Sustainability Report analyzes G7 and BRICS nations and a selection of countries that offer investment migration programs across five key sustainability and wealth parameters including population density and CO2 emissions per capita, achievement of the UN’s Sustainable Development Goals, and unique wealth-tier and wealth per capita data. Global citizens and investors seeking to improve their resilience to the impacts of climate change through investment migration can
explore program options and make strategic, data-driven choices about where best to live, study, conduct
business, invest, and retire — now and for future generations.

Global families can mitigate exposure to climate catastrophes
The escalating climate crisis is one of the biggest challenges of our time, impacting almost every aspect
of our lives, society, and the environment. The past year alone has seen a worrying number of extreme
weather events across the globe — from record-low temperatures in Afghanistan, to cyclones displacing
over half a million people in southern Africa, unprecedented wildfires in Canada and Greece, deadly
dam collapses from torrential rain in Libya, and the remarkably rapid intensification of Hurricane Otis in
Mexico.
With average global temperatures at exceptionally high levels, such climate disasters are expected to
only worsen and increase in frequency. Rising sea levels could threaten the very existence of low-lying
cities, regions, and countries. However, the impacts will not be felt equally everywhere — there will be
relative climate winners and losers.
This is where investment migration comes in as a resilience-building solution. By gaining alternative
residence or citizenship rights in more climate-resilient locations, global families can diversify their
domiciles and mitigate their exposure to climate risks in any single jurisdiction.

Innovative financing for sustainable development
At the same time, governments facing the need to bolster their climate resilience and sustainable development are turning to investment migration programs as an innovative financing mechanism. Several countries, especially island nations highly vulnerable to climate change, are already channeling program inflows into impactful projects such as transitioning to renewable energy, adapting infrastructure to better withstand extreme weather, and sustainably rebuilding after climate disasters.

Importantly, investment migration enhances the sovereign equity of host nations without them having to
take on more debt or sacrifice other key priorities. It’s a mutually beneficial model that can mobilize
crucial investment into climate solutions and adaptation. Conscientious investors can actively choose
programs that fund sustainability initiatives.
For example, investors in theGrenada Citizenship by Investment Program can contribute USD 150,000 to its National Transformation Fund, which supports climate-resilient industries such as agriculture and alternative energy, and in return acquire Grenadian citizenship. The Antigua and Barbuda Citixenship by Investment Program has an option to contribute USD 100,000 to the National Development Fund to qualify for citizenship, and revenues have financed extensive solar power installations and the rebuilding
of Barbuda after its devastation by Hurricane Irma in 2017.

With the upcoming COP29 climate conference set to focus on building climate resilience and investing
in solutions, residence and citizenship by investment programs offer an innovative path forward. For
global investors and nations alike, it’s a sustainable win–win — empowering strategic, future-oriented
choices to build a more resilient world.
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