It doesn't need to be, it just needs some regulations on the emissions, like cars.
What about the space elevator? 
All we need for that would be building materials with the needed tensile strength, and research into those is ongoing (carbon nanotubes to the rescue!)
I'm all for space flight. A moon colony means less people on the Earth to pollute it. Same with a Martian colony, except you can cram more people on Mars and Phobos and Deimos than on the Moon. And just wait until we get FTL travel. People will be abandoning the Earth in droves to settle and terraform new planets.
Read this. Not the whole thread, just the blog posting. Bottom line: Space colonization is not going to happen, unless several "magical" technologies (in the Arthur C. Clarke sense) are developed that allow humans to not only go out there, but stay there indefinitely.
That said, colonizing the space near earth is most definitely possible, but I find it highly unlikely that the amount of people going up there would make a serious dent in the population totals down here. Oh, and you DO know that Phobos and Deimos are just asteroids, right?