The head of the International Monetary Fund says energy powerhouses like Canada need to be proactive when it comes to protecting the environment and not simply wait for a deal to be reached on replacing the Kyoto Protocol.
Paul Desmarais Jr, Chairman and co-CEO of Power Corp., chats with Christine Lagarde, Managing Director, International Monetary Fund at the 20th Conference of Montreal, Monday, June 9, 2014 in Montreal.THE CANADIAN PRESS/Ryan Remiorz
Christine Lagarde told an international economic conference in Montreal that whether it’s a carbon tax or a cap-and-trade system, a mechanism is needed to reflect the cost of emissions that will encourage less consumption.
Lagarde applauded Canada’s efforts to unleash its energy sector, supporting efforts to expand infrastructure that will boost exports to Asia and Europe.
But she says the drive to boost energy exports can’t be done to the detriment of the environment.
Lagarde added that the economic benefits of the gains in the energy sector must be widely shared, attracting people not only to oil-producing areas, but also providing jobs to those living in non-resource-rich areas.
Meanwhile, Lagarde says that while the global economic recovery is “turning the corner” on the Great Recession, it remains fragile and faces “the twin enemies of complacency and fatigue.” She says she expects Canada’s economy will grow by 2.25 per cent this year, helped by improvements in the United States.