The starting point for any sustainable policy on energy is that worldwide limits must be set for carbon dioxide (CO2) emission levels. National energy policies must also adhere to these limits and national ceilings should be set for CO2 emissions. The nature and extent of these ceilings would be determined by international negotiations of the Climate Alliance. The CO2 ceiling should be lowered in step-by-step phases so that countries are also able to adjust gradually. CO2 emissions can be tradable.
Reliable and price-competitive energy supply is inseparable from industrial and societal progress. Proper energy systems analysis should be applied in order to study and characterize alternative energy systems before they are implemented. The development of electrical powers systems is of great importance to developing countries. Since such systems are especially capital intensive, the cost-effectiveness of this investment is of critical concern. It represents a high proportion of all the investment requirements of developing countries.
Countries are beginning to reduce the use of fossil fuels in sectors which offer the best potential for energy savings and stabilize their usage in sectors where the use of fossil fuels is still growing. For example, one sector in which it is possible to greatly reduce usage in the short-term is the housing and construction sector. It is possible to insulate houses in such a way that heating costs and drastically cut back. Such reduction of fossil fuel use does not require sacrifice of standard of living.