Singapore's Environment and Water Resources Minister Vivian Balakrishnan said on Tuesday that it is not likely that the world will come to a legally binding agreement on climate change at the upcoming United Nations climate summit in Durban, South Africa.

"There isn't the political will or financial resources to make such a deal," Balakarishnan said at the opening of the Clean Energy Expo Asia in Singapore on Tuesday.

Nevertheless, it is still important that the governments and companies make multi-billion decisions in energy investments to understand that their decisions will have long-term implications, he said.

The Durban meeting will take place at the end of this month.

Balakarishnan said policy makers need to have rational policies in place for the long term so that countries are well prepared for a future that will see diminishing energy resources.

"We need to position ourselves in the future, not prematurely, not ideologically, but (be) rational and forward looking," he said.

The 1997 Kyoto protocol is the first and only international agreement on the stabilization of greenhouse gas concentrations in the atmosphere. Its first commitment period ends on Dec. 31, 2012.

However, there has been a near stalemate what commitments developed and developing countries, respectively, should make on climate change mitigation for after 2012.