You don't need to forward bias the B-E junction. Whether you do depends on what you want the transistor to do. To keep it off, you want to not forward bias the B-E junction. As for the C-B junction, keeping that reverse biased is fundamental to how BJTs operate.
A BJT is basically a reverse biased junction that can be made selectively leaky. You apply a voltage accross C-E and with the base open nothing happens. The reverse biased junction doesn't allow any (except for small leakage we will ignore) current to flow. However, the special property of a BJT is that a little current thru the base messes up the insulating capability of the reverse biased junction. The gain, and hence the useful properties, of a BJT come from the fact that is only takes a little current to muck up the reverse biased junction such that it allows a lot more C-E current to flow. This ratio of C-E current to B-E current is the basic gain of the transistor. It can be as low as 5-10 in big mongo power transistors and 100s in high gain signal transistors.
The B-E junction also looks like a diode to the external circuit. It will have a forward voltage drop when conducting just like a regular diode. In silicon, this is 500-750 mV for most non-extreme applications.
If you want to use the transistor as a switch (either as full off or full on as you can make it) then you have to make sure there is no base current in the off case, and plenty enough to support the desired collector current in the on case. Driving the base to the emitter voltage is a good way to make sure the transistor is off. To turn it fully on, you need to provide at least 1/gain of the desired collector current.
In other cases, a BJT might be used in "linear" (it's often rather non-linear, but this is the term used to mean in-between mode or not-switch mode) mode, like a audio amplifier. In that case you want to always keep it somewhat on and have the input signal change its operating point. If done right, this can amplify the signal. Different configurations give you voltage gain, or current gain, or some combination. In these cases, biasing the transistor refers to keeping it somewhere in the middle of the operating range so that a little input signal can change the output both ways. Biasing is basically setting up the DC operating point.
When we say that the base is "grounded" in a common-base amplifier, we're talking about the AC small-signal analysis of the circuit. The key concept is that there is no signal voltage on the base terminal.
This does not mean that there's no DC bias on that terminal, if it is required for the circuit to operate. But note that the base COULD be directly connected to ground if the emitter has a negative bias (assuming NPN transistor).
Best Answer
LED D2 is green and it needs about about 2.0V to light up. LED D1 is red and it needs about 1.6V to light up.
And when the transistor is turned on, it has a Vce drop of about 0.2V.
Adding the voltage drops of the transistor and red LED D1, that is still less than what green LED D2 needs to work, so there is not enough voltage over green LED D2 to turn on.