View full article here: Vanuatu’s CNO Future Fund Expands, Drawing More Investors in Renewable Energy
The CNO Future Fund, Vanuatu’s investment-driven citizenship program, is seeing increased investor interest as it expands its renewable energy initiatives. The fund, which focuses on coconut oil-based biofuel projects, has recorded a 14% increase in net asset value (NAV) over the first 12 months of the establishment phase, signaling strong investor confidence in its model.
Vanuatu’s government has set ambitious renewable energy targets for 2030, aiming to replace diesel imports with sustainable alternatives. The fund plays a key role in this transition by commercialising coconut oil production for base grid power generation, reducing the country’s dependence on fossil fuels.
Vanuatu’s citizenship-by-investment framework offers two powerful options, each catering to different investor profiles.
The Development Support Program (DSP) remains a cornerstone of Vanuatu’s global mobility offering. Designed for individuals seeking a straightforward, donation-based route to citizenship, the DSP has played a vital role in financing essential public services and infrastructure. Its fast processing, simplicity, and trusted reputation make it the preferred choice for thousands of applicants worldwide.
In parallel, the Capital Investment Immigration Plan (CIIP)—specifically through the CNO Future Fund—introduces a unique pathway that blends citizenship with impact-driven investment. Applicants under this model receive redeemable preference shares in a fund that supports renewable energy development and rural transformation in Vanuatu. This commercial structure allows investors to align their values with their assets, generating potential returns while contributing directly to the nation’s 2030 energy goals.
VIMB, the architect behind the CIIP and the exclusive government-designated agent for both programs, is committed to offering global investors a choice: one rooted in contribution, the other in sustainable investment.
Coconut oil has long been an export commodity for Vanuatu, but its energy potential is now being fully realized. The fund’s five-year strategy aims to produce 16 million liters annually by 2030—enough to replace a substantial portion of imported diesel.
Progress is tangible: over 420,000 liters of CNO were produced in Q4 alone, despite disruptions from a 7.3 magnitude earthquake. The Fund’s investment includes upgrading existing mills, acquiring new equipment, and expanding the capabilities of its partner, Vanuatu Basket Ltd, in which it holds a 30% equity stake. This includes repurposing idle refinery equipment and field-testing containerized dryers to automate and scale coconut processing in outer islands.
Daniel Agius, Chief Operating Officer of the Vanuatu Investment Marketing Bureau (VIMB) emphasized the fund’s role in both economic growth and energy transformation. “We are scaling production to meet national energy targets while strengthening rural economies,” he said. “The commercial structure ensures long-term sustainability, benefiting both investors and local communities.”
The fund is not only advancing Vanuatu’s energy future but also revitalizing rural economies. In 2024, it created over 55 direct jobs and formalized 40 production contracts. Copra aggregation hubs were established in Malakula, Santo, and Epi, while copra drying infrastructure has been refurbished and expanded across six islands. Farmers are also benefiting from livestock and multi-crop initiatives, including access to coconut by-products for animal feed.
Investments in transport and logistics have expanded connectivity between island chains and helped reduce costs associated with the movement of raw materials. The Fund also contributed materials for the reconstruction of the Craig Cove Wharf, a vital link for maritime supply chains in Ambrym.
Since launch, VIMB has processed over 124 CIIP applications, translating to USD 5.95 million in fund investment and USD 7.76 million in direct government revenue. This commercial model continues to attract international investors who value the dual benefits of financial return and second citizenship.
While the current focus remains on coconut oil, expansion into solar, wind, and maritime biofuels is under consideration. The Fund is also exploring power partnerships to supply carbon-neutral energy to Lelepa Island.
Agius pointed out that the fund’s success demonstrates the viability of investment-led citizenship programs. “We’ve seen strong interest from investors who recognize both the financial and environmental benefits,” he said. “This model has the potential to be replicated in other sustainable sectors.”
Despite its rapid growth, the fund faces operational and logistical challenges. Expanding coconut oil production requires continued investment in processing technology and market infrastructure. Additionally, fluctuations in global commodity prices could impact long-term revenue projections.
Infrastructure development remains a work in progress, particularly in rural transport networks. The success of the fund’s expansion will depend on further government and private-sector collaboration to improve supply chains and processing capacity.
Vanuatu’s policy stability will also affect investor confidence. As the government considers further reforms, maintaining transparency in investment regulations will be key to sustaining growth.
The CNO Future Fund has made itself a leading example of sustainable investment in citizenship programs. As global interest in renewable energy rises, Vanuatu’s model could serve as a reference for other nations seeking to align investment with long-term environmental and economic goals.
