Government of Canada ICC Gouvernement Du Canada ICC Date : 02/08/2022 Unclassified For Action File number : XXXXX BRIEFING NOTE FOR THE MINISTER OF IMMIGRATION AND CITIZENSHIP Tackling Climate Change With Flexible Immigration Policies ISSUE: Climate change is a pressing issue that affects the entire globe. As one of the largest contributors to emissions that cause global warming, it is important to find ways to reduce our emissions or limit the population. If immigrants from lower emission countries move to Canada, it will result in a net increase in the overall carbon emissions. It is therefore important to revise our current immigration policy to reflect this pressing issue. BACKGROUND Studies have consistently shown that if the world remain on the current trajectory, in the next few decades, the total global warming will reach 2 degrees Celsius. Studies estimate that this increase in temperature is the critical point in which many self-perpetuating events will start happening after which the damage will be irreversible. This global warming comes mainly from what is known as “the greenhouse effect”. As gases released from different sources get into the atmosphere, they trap the heat inside the atmosphere and thus cause a raise in temperature. The main causes of the greenhouse effect are water (in the form of water vapor and clouds) which accounts for 75% of the effect and Co2 which accounts for 20%. Water levels remained relatively stable throughout the years, but it has been shown that Co2 levels increased drastically since the industrial revolution and that this increase is mainly from anthropogenic sources. The effects of this warming are a global danger, The upper 3000 meters of the ocean have warmed, causing an imbalance in the aquatic life and therefore to many populations who depend on fishing. Ice caps are melting, raising the ocean levels and causing shoreline cities to be in flooding danger. A great deposit of methane is trapped under the permafrost in Siberia, if released the gas will increase the warming to unprecedented level. CURRENT STATUS Canada currently ranks 7th in per capita Co2 emissions and currently, therefore any immigration coming from lower emitting countries will result in a net increase of carbon emissions. Canada’s current goal is to welcome 431,645 new permanent residents in -1- 2022, 447,055 in 2023, and 451,000 in 2024 to tackle the aging population and the labour shortages. These are record breaking numbers and will result in a big increase in net emissions as it is most likely that these immigrants will come from a country that is lower in emissions. KEY CONSIDERATIONS When immigrants move to a different country, they tend to adapt their standard of living accordingly. In the case of immigration to Canada this will mean an increase in carbon footprint of the immigrants. Looking at Canada’s immigration goals, it will mean that in the span of 3 years more than 1.3 million people will arrive to Canada or a net average increase of 12 million metric tons of CO2. The literature on climate change led to the creation of the Environmental Kuznets Curve hypothesis, which states that the relationship between economic growth and environmental degradation has an inverted U shape, meaning that it is at first increasing and then decreasing after a critical point. The goal of our policy should be to get developing nations to the decreasing part of the curve as fast as possible. Canada has a high GDP per capita and many advanced technological and educational institutes that can benefit developing nations. Many immigrants seek to take advantage of these institutions and improve their quality of life. The problem arises when these people prefer to stay rather than to go back to their original country and put their knowledge to use. In Canada the stay rate of international students is 33% while on average 74% of students change their status for work related reasons, many of these also use the family reunification program to bring their relatives as well. Canada’s immigrants earnings record has deteriorated since 1980 due to a large number being from the family reunification and refugee programs that do not require the point system on which economic immigrants are subject to. In 2021 23% of immigrants were older than 50 or younger than 15. The latter are less of a problem as they will eventually enter the workforce, but the former will create and additional burden for the Canadian taxpayers. By 2045 the dependent population is projected to reach 46%, a substantial burden on the rest of the population, therefore there is a need for a labor force or a tax revenue large enough to support this aging demographic. 25% of this dependent populations are people above 65. Canada’s fertility rate has diminished in the last decades so to offset this older dependent population, Canada can increase the age of retirement or increase working hours but studies have shown that there is a reluctance to adopt such solutions, therefore Canada relies on immigration to fill the labor shortages such an aging demographic creates. -2- It is a short-sighted solution since second generation immigrants tend to assimilate and their fertility rate converges to that of the country they immigrated to, which ends up creating a larger and larger proportion of people above retirement age. It is better to focus on limiting immigration and incentivizing having children to better control the population. RECOMMENDATIONS Because of the issues presented above, it is recommended to create a new temporary immigrant class in partnership with businesses and educational institutions. We can keep the level of immigration unchanged, while creating subsidised programs where workers can work in specific in demand fields and study at the same time in fields relating to green technologies or environmental studies. After receiving the technical know-how while also helping with labor shortages, these immigrants will return to their original countries to put their education into practice helping to get their countries to the decreasing part of the Environmental Kuznets Curve. Canada can also invest in businesses abroad to create jobs and incentivize their return without the loss in quality of life while retaining some profit from the development projects which in turn will alleviate the issue of the dependent population levels. At the same time, limiting the family reunification program to only people of working age or younger will help to limit the increase in dependent population and incentivize those who have family abroad to return home. Should you require additional information, do not hesitate to contact me, Guy Koppel, senior economist for the Government of Ontario at XXX-XXX-XXXX. -3-