The main body of research within climate-change induced migration has focused on displacement migration. The "sinking islands" reference is often used to describe island states being in the forefront of climate change impacts, and their inhabitants at risk of becoming the first climate change refugees in history. The aim of this thesis is to understand what circumstances are needed for Kiribati’s ‘Migration with Dignity’ concept to enhance the adaptive capacity of livelihoods. By using the Sustainable Livelihood Approach this thesis examines what impacts climate change has on different aspects of livelihoods in Kiribati. This study uses a case study approach. Data has been collected through 14 semi-structured interviews during an eight weeks long minor field study on the capital atoll South Tarawa. While Kiribati faces many development challenges, being a least developed country with a rent-based economy, climate change puts additional strains on the country’s capacities to cope with the increasing monetization and urbanisation, and abilities to satisfy the growing population’s aspirations. The empirical evidence shows a need among the population to find education and skilled wage employment. Harmonisation between migration, development and adaptation policies can increase livelihoods’ economic conditions and abilities to cope with climate change-related stresses, especially for future generations.