IEA Invites India to be a Full-Time Member

• 18 Oct 2021

Why in News

Recently, the International Energy Agency (IEA) has invited India, the world’s third-largest energy consumer, to become its full-time member.

Key Points

• Background:
  
  • India became an Associate member of IEA in March 2017 but it was in engagement with IEA long before its association with the organization.
  • Earlier in 2021, India also inked a Strategic Partnership Agreement with the IEA to strengthen cooperation in global energy security, stability and sustainability.
  • As a natural corollary to the India IEA strategic partnership, IEA invited India to deepen its cooperation with IEA by becoming a full Member.
• Reason for Offering Membership to India:
  
  • India is becoming increasingly influential in global energy trends. Its in-depth report on India's energy policies, which was released in January 2020, states that the country's demand for energy is set to grow rapidly in the coming decades, with electricity use set to increase particularly fast.
  • The country's reliance on fuel imports makes further improving energy security a key priority for the Indian economy.
• IEA’s Membership:
  
  • The IEA is made up of 30 member countries.
  • It also includes eight association countries. Four countries are seeking accession to full membership, Chile, Colombia, Israel and Lithuania.
  • A candidate country to the IEA must be a member country of the Organisation for Economic Co-operation and Development (OECD).
• Eligibility Criteria: A candidate country to the IEA must have:
  
  • Crude oil and/or product reserves (Strategic Oil Reserves) equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply.
    
    • India's current strategic oil reserves equal 9.5 days of its requirement.
  • A demand restraint programme to reduce national oil consumption by up to 10%.
  • Legislation and organisation to operate the Coordinated Emergency Response Measures (CERM) on a national basis.
  • Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request.
  • Measures in place to ensure the capability of contributing its share of an IEA collective action.
    
    • An IEA collective action would be initiated in response to a significant global oil supply disruption.

International Energy Agency

• About:
  
  • It is an autonomous Intergovernmental Organisation established in 1974 in Paris, France.
  • It mainly focuses on its energy policies which include economic development, energy security and environmental protection. These policies are also known as the 3 E’s of IEA.
  • IEA Clean Coal Centre is dedicated to providing independent information and analysis on how coal can become a cleaner source of energy, compatible with the UN Sustainable Development Goals.
• Need:
  
  • Established in the wake of the oil crisis of 1973-1974, to help its members respond to major disruptions in oil supply.
• Mandate:
  
  • Over time, the mandate of the IEA has expanded to include tracking and analyzing key global energy trends, promoting sound energy policy and encouraging multinational energy technology cooperation.
• Mission:
  
  • Ensure reliable, affordable and clean energy for its member countries and beyond.
• Focus Areas:
  
  • Energy Security: Promoting diversity, efficiency and flexibility within all energy sectors.
  • Economic Development: Ensuring the stable supply of energy to IEA member countries and promoting free markets to foster economic growth and eliminate energy poverty.
  • Environmental Awareness: Enhancing international knowledge of options for tackling climate change.
  • Engagement Worldwide: Working closely with non-member countries, especially major producers and consumers, to find solutions to shared energy and environmental concerns.
• Major Reports:
  
  • World Energy Outlook Report.
  • World Energy Investment Report.
  • World Energy Statistics.
  • World Energy Balances.
  • Energy Technology Perspectives.
  • India Energy Outlook Report.

Source: TH