Motorsport boss Max Mosley wants Formula One to focus on fuel-efficient engines rather than chasing raw power.
Mosley has not accepted F1 teams' demands for more development
"F1 could be positioned at the cutting edge of fuel-efficiency research and development," said the FIA president.
"I realise it is more comfortable to continue in the old ways and hope everything will be all right. But that is a recipe for decline and failure."
Mosley has also written to the 11 teams to confirm a freeze on engine development from 2008.
F1 has seven engine providers - BMW, Ferrari, Honda, Mercedes, Renault, Toyota and Cosworth. Fiat-owned Ferrari, Honda, Toyota and Cosworth supply two teams each.
The FIA is re-writing the engine regulations from 2008, when the "Concorde Agreement" governing the sport expires, to cut costs and level the playing field.
But the Grand Prix Manufacturers' Association, which includes all but Ferrari and Cosworth, had been seeking a compromise to allow limited development.
The engines used in 2008 will be the same as those in use on 1 June 2006
It proposed a fund to help independent teams secure engines from a privately-owned supplier - such as Cosworth or Mecachrome.
But Mosley, who last month proposed the use of energy storage systems in F1 engines from 2009 - said: "It is now clear that we must stop discussing engine regulations and focus entirely on complying with those we already have.
"This means that the engines used in 2008 will be the same as those in use on 1 June 2006.
"It is to be hoped that everyone will agree to use these engines also for 2007 and thus avoid pointless and wasteful development work for just one season.
"It would demonstrate environmental relevance to the world's policy makers and accelerate environmental benefits for the world's motoring consumers."