Through energy efficiency, innovative materials and solar power, the city will use only 25 percent of the energy of a conventionally built city. The $22 billion venture will save $2 billion in oil over then next 25 years, according to the founders of Masdar Energy from Abu Dhabi -- which happens to be the world's 5th largest oil exporter. Part of this oil reduction will come from having no cars on the roads. This is an aggressive and smart plan to rely on public transit.

The city will generate considerable revenue by selling carbon credits under the Kyoto Protocol's Clean Development Mechanism. This could become even more lucrative if the U.S. decides to set up an international carbon cap and trade system.

The city will include the Masdar Institute of Science and Technology "the world’s first graduate university dedicated to renewable energy," that is being developed in partnership with MIT.

This is a bold vision for a country that today is reaping the benefits from selling oil. (ExxonMobil's contrary vision is to reward its shareholders and top executives today while paying little heed to the future.)

Masdar won't be cheap, but the innovative technologies and design could soon be imitated by other less affluent nations.