When historians speak of doomed civilizations, they often point to Easter Island, a society that based its culture and economy on the natural resource of wood—until the consumption of the final tree. Many fear today’s global civilization is heading down a similar path, this time brought about by the depletion of current energy sources and of the atmosphere. The world’s oil reserves will be gone by 2045, according to the 2004 British Petroleum Statistical Review of World Energy. Sooner than that, perhaps in the next 5 to 30 years, will come the peak in the supply of cheap oil. Will future historians refer to the twentieth and twenty-first centuries in the same breath as Easter Island?

Perhaps all is not so bleak. The global community appears to have realized the urgency of the problem and has established myriad programs to find and develop alternative energy sources. As nations and international organizations make alternative energy a priority, they reduce the likelihood that the world will relive an Easter Island tragedy.

The End of Fossil Fuels?

Today, most energy is produced by the burning of fossil fuels (coal, oil, and natural gas), which can be extracted more easily and cheaply than most other types of energy. Overusing this non-renewable source of energy will not only lead to its exhaustion, or at least to significant increases in its cost, as angry customers at gasoline pumps may have noticed; it may also lead to profound changes in societies the world over. The burning of fossil fuels affects the environment, leading to air pollution, global warming, severe climate changes, and health problems such as asthma. Alternative sources of energy may be more expensive or more difficult to obtain, but the negatives seem to pale in comparison to this generation’s responsibility to ensure livable conditions on Earth for future generations. Given the rocketing prices of gasoline and the prospect that oil resources will be depleted, the search for alternative energy sources is indeed becoming an imperative.

As David Landis of Kiplinger’s Personal Finance Magazine states, no longer are “alternative-energy companies lonely hitchhikers on a highway full of Hummers.” Along with the significant rise in oil prices and the US Congress’ recent energy bill, what will most likely follow is a growth in the number of investors who see alternative energy as the next logical investment. As alternative energy companies gain potential and increase funds, communities around the world will begin to feel the impact of new sources of energy. The buzz of alternate energy sources is already spreading through various sectors, from multinational organizations to major industries, from one nation to another, and even among individual citizens.

A Private Effort

In the near future, nuclear fusion may come to replace fossil fuels as the world’s primary source of energy. The International Thermonuclear Experimental Reactor (ITER), sponsored by the International Atomic Energy Agency (IAEA), considers itself, according to its website, “the experimental step between today’s studies of plasma physics and tomorrow’s electricity-producing fusion power plants.” Those involved in the ITER—China, the European Union, Switzerland, Japan, Russia, South Korea, and the United States—are working together to bring to the world fusion power. The plan for the plasma project was finished in 2001, and by 2016 the ITER’s goal of plasma-generated fusion power may be complete. Although the operation of converting plasma to fusion power is highly complex, the planned result is an electric current capable of powering anything from an automobile to an entire city. While this form of power may entail extra expenses, as machines would have to be reformatted to function on fusion power, the benefits of its uses should outweigh the burdens of its costs. These benefits include fusion’s unlimited supply, its widely applicable character, and its controllable environmental impact. The EUR 10 billion cost for fusion projects of the ITER will be divided amongst the members, with 50 percent contributed by the European Union and 10 percent contributed by each non-EU member.

Another multilateral initiative is assisting the development of alternative energy sources in a different way. The Asia Alternative Energy Program (ASTAE), created in 1992 by the World Bank, is working to create an atmosphere that fosters alternative energy projects. ASTAE stimulates markets to save on electricity, mobilizes public and private businesses to invest in projects that develop alternative energy sources, and more generally facilitates developments of such alternative energy projects. Underlying the ASTAE’s efforts is its belief that it is now possible for energy-efficient and renewable technology projects to be funded by bank loans. To this end, the ASTAE is working to develop within global markets an environment both aware of the search for alternative energy sources and responsive to its needs for subsidization. Since the creation of the ASTAE, loans for alternative energy in Asia by the World Bank have increased from US$2 million to US$3.5 billion. So far, five projects that the ASTAE has worked with have been completed, and 18 are currently in the process of being implemented. These projects represent more than US$1.8 billion in investments in alternative energy by the private sector, commercial banks, governments, and bilateral or multilateral institutions. According to the ASTAE’s website, these “projects are expected to displace about 1.3 gigawatts (GW) of fossil fuel fired generation capacity and will provide electricity to an estimated 400,000-500,000 rural households.”

Multinationals Raise the Bar

Multinational companies also seem to be jumping on the alternative-energy bandwagon at last. The German automaker Volkswagen announced in September 2005 that it and its Chinese partner Shanghai Automotive will produce hybrid cars by 2008 and that they may start mass-producing these energy-efficient vehicles by 2010. This project may kick off China’s quest for alternative energy sources and limit pollution as demand for cars skyrockets. Volkswagen plans to produce 500 hybrid Touran cars to act as transporters at the 2008 Beijing Olympics. Japanese automakers such as Toyota and Honda have shown developments in hybrid technology as well. They have launched numerous gasoline-electric hybrids, which include the Toyota Prius, Toyota Highlander, Lexus RX 400h, Honda Insight, Honda Civic Hybrid, and Honda Accord Hybrid. According to an article by Ann Job of MSN news, “Toyota and Honda hybrids are on a record sales pace in calendar 2005.”