Living as we do, surrounded by carbon-consuming cars, computers, kids and more, and seemingly completely dependent on fossil fuels, it's hard to imagine a world completely powered by renewable energy. But one tiny Pacific state has put the big boys to shame by announcing its planned switch to a completely renewable energy economy.

Tokelau – a speck of an island group that breaks the surface of the Pacific half way between Hawaii and New Zealand – this week challenged a panel of the World's most powerful leaders to follow suit at the UN climate talks currently being held in Durban, South Africa.

"If all goes to plan, the three islands of Tokelau will formally lead the world in percentage reduction in the use of fossil fuels, will be number one leader in carbon emissions savings per person, and number onerenewable energy country," said Foua Toloa, Tokelau's head of state. "We stand to lose the most of any country in the world due to climate change and the rising sea levels, so leading the way by making the highest per person investment in the world is a message to the world to do something."

With a population of only 1500 people, and just three operating cars, the challenge of converting to a renewable way of life is perhaps less sizeable for Tokelau than the vast task facing the fully industrialised millions of the world's bigger economies, but nevertheless, it's without doubt a landmark in the energy revolution.

With the majority of the world's major energy sources – natural gas and oil – believed to have passed their peak annual production, and therefore steadily decreasing, it's never been more urgent to find renewable alternatives (whatever your standing on global warming and other related issues). Tokelau will, next September, turn off its old diesel generators and instead rely on a brand new $7.5m solar PV system for 90% of its energy, with the country's home-grown coconut oil making up the remaining 10%.

This small island's willingness to take this step forward stands in stark contrast to some of the world's leading nations, who are seemingly making giant leaps in the opposite direction – Canada, for example, recently announced its decision to renounce the terms of the climate protecting Kyoto agreement.

If the plan is successful, the island predicts it will save around 12,000 tonnes of CO2 over the course of the 1MW solar plants life. That figure equates to about 1600 times the average annual emissions of a single person in the UK. In order the make this bold plan a reality, the nation needs to find $900,000 funding to go towards the million-dollar facility. If it does, it could prove a kickstart for a renewable energy revolution in the Pacific in beyond.

Of course solar energy isn't necessarily the solution for everyone (not least the UK), so which renewable sources do you think are the best investment for our future? Do you live near a wind farm? Or have you started producing energy at home? Tell us your renewable energy experiences.

For more information on Tokelau's renewable energy ambition and other issues being discussed at the UN climate talks head to unfccc.int