Well China started investing in renewables some time ago and are now adding almost half the world renewables. The reality is though climate change can't be changed or reversed by capitalism fast enough. And because of the financial crisis over the last few years the developed world probably doest have the money it needs to finance the developing worlds energy needs. The next 1-2 billion people from Asia Africa will start using electricity a few times more than what they are now and the developed world curtailing their emissions wont be enough.

You are perfectly correct each person (or each state) following its self interest leads in this case logically to a slow motion disaster

Ethics, especially a la Kant, can help to address this shortcoming.

"Act only according to that maxim whereby you can, at the same time, will that it should become a universal law"

I like eating meal every day, but I cannot wish that this become the universal diet (especially of those 1b Indians). Therefore my ethical compass tell me to alter my food habits

But it's a false dilemma. Ultimately, it's possible to reduce our emissions without reducing consumption, either of energy or resources.

The coal lobby has done a good job of making renewables look like they're a significantly different way of life. At the end of the day your aircon will still run whether it's powered by coal, nuclear, solar, wind, hydro or literally anything else that can push electrons. Where the power comes from has very little effect on the utility of that power.