The world cannot solve the twin problems of energy and environmental crisis unless we are prepared to change our lifestyle in a fundamental way.

After the failed efforts of Kyoto Protocol to prevent climate change, discussion and planning prior to Copenhagen Summit have concentrated mostly on legally binding emission standards to be agreed upon for limiting the Greenhouse Gas (GHG) emissions and also helping the developing countries reduce their GHG emissions by transferring wealth to them from the developed countries. The role of alternate energy sources has not taken the center stage in all these discussions. Soon after every oil shock (1973, 1978 and 2003-2008), much has been discussed about the increasing possibility of alternate energy sources replacing fossil fuels. But the neglect of an important topic like alternate energy prior to Copenhagen Summit is not an oversight. It is because, over the next 20 to 30 years, their role is likely to be limited. Several factors contribute to this: poor economics in relation to fossil fuels, difficulty faced by the developing countries in reducing massive subsidies in energy sector, the race by the developing countries to catch up with the `higher standard of living' of the industrialized countries, and unwillingness on the part of the industrialized countries to alter their energy-intensive lifestyle. In short, the world will not be able to slow down its increasing demand for energy.

Today, the world is facing unprecedented energy and environmental crisis is well-known. In 2008, oil prices, after reaching a high of $147 per barrel, fell to low 30s (see Graph 1). It is not clear whether the market was influenced by speculation or it was signaling the beginning of the end of cheap oil era, as predicted by peak oil theorists. The greater use of coal, oil and gas contributing to the phenomenon of greenhouse gases and the resultant global warming has increasingly been accepted as the primary cause by the scientific community. But there is a strong and articulate minority of scientists who disagree with the factors causing the climate change. Can we afford not to take insurance, especially when it costs little and is also good in the long run?

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