The International Energy Agency (IEA), the global energy watchdog, has extended an invitation to India to become its full-time member. This news comes on the heels of India’s increasing influence over global energy trends and its strategic partnership agreement with the IEA earlier in 2021. As a full-time member, India can play a significant role in global energy security, stability, and sustainability, primarily due to its status as the world’s third-largest energy consumer.
IEA and India: A Historical Perspective
India’s association with the IEA dates back to March 2017, when it became an Associate member. However, the country had been in dialogue with the IEA prior to its formal association. The relationship reached a new milestone in 2021, when India signed a Strategic Partnership Agreement with IEA, signaling its commitment to strengthen cooperation in global energy security, stability, and sustainability. This strategic partnership has led to India being invited to become a full member of the IEA, further deepening cooperation between the two.
India’s Rising Influence on Global Energy Trends
India’s prominence in global energy trends is one of the main reasons for offering full-time membership. The IEA’s comprehensive report on India’s energy policies, released in January 2020, indicated that India’s energy demand is set to skyrocket in the coming decades. Electricity consumption, in particular, is projected to witness a steep increase, while the country’s dependency on fuel imports necessitates bolstered energy security measures, underscoring the criticality of India’s economy in the global energy market.
Understanding the Membership of IEA
Currently, the IEA comprises 30 member countries along with eight associate countries. Some nations like Chile, Colombia, Israel, and Lithuania are actively seeking accession to full membership. It’s important to note that full membership in the IEA requires being a part of the Organisation for Economic Co-operation and Development (OECD).
Eligibility Criteria for IEA Membership
IEA mandates specific criteria for any country to join its ranks. A prospective member must maintain crude oil or product reserves (Strategic Oil Reserves) equivalent to 90 days of the previous year’s net imports. The country’s government should have immediate access to these reserves, even if it doesn’t own them directly, to address potential disruptions to global oil supply. For instance, India’s current strategic oil reserves equal 9.5 days of its requirement.
Additionally, a candidate country needs to have measures in place to lower national oil consumption by up to 10% and operate the Coordinated Emergency Response Measures (CERM) at a national level. It also needs to ensure reporting compliance from all oil companies within its jurisdiction and demonstrate readiness to contribute to an IEA collective action in response to significant global oil supply disruption.
About International Energy Agency
Founded in 1974 in Paris, France, the IEA is an autonomous Intergovernmental Organisation primarily focused on energy policies. These policies encompass the 3 E’s of IEA: economic development, energy security, and environmental protection. The IEA’s mandate has evolved over time, and now includes tracking and analyzing global energy trends, fostering sound energy policy, and promoting multinational energy technology cooperation. The IEA also produces several significant reports, including the World Energy Outlook Report and the India Energy Outlook Report, offering critical insights into global energy trends.