India Seeks to Join IEA

Brief Context

Context The International Energy Agency (IEA) welcomed the progress being made on India’s request for full membership of the organisation. The International Energy Agency (IEA) Established: In 1974. The IEA’s founding members were Austria, Belgium, Canada, Denmark, Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland, Türkiye, United Kingdom, and the United States.

Source Content

Syllabus: GS2/Regional Groupings

Context

• The International Energy Agency (IEA) welcomed the progress being made on India’s request for full membership of the organisation.

The International Energy Agency (IEA) 

• Established: In 1974.
• The IEA’s founding members were Austria, Belgium, Canada, Denmark, Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland, Türkiye, United Kingdom, and the United States.
• Reason: It was created when major oil-exporting countries drastically reduced oil supplies, causing severe economic disruptions in industrialized nations.
• Mandate: IEA’s original mandate was to ensure that oil supplies were kept stable, and potential disruptions in future were anticipated and prevented through timely action.
  • It also developed an elaborate mechanism to deal with oil emergencies in future, making it mandatory for every member country to maintain certain minimum strategic stocks of oil. 
• Members: The membership was kept open only for OECD countries.
  • There are now 33 full members with Colombia being inducted as 33rd members recently.
• Associate Members: In 2015, IEA opened the doors for non-OECD countries to become associate members.
  • The associate members participate in the policy discussions and activities, but do not have decision-making rights. 
  • India became an associate member in 2017. There are 13 associate members right now.

Shift in the Role of IEA

• Expansion Beyond Oil Security: It has moved from a narrow focus on oil supply security to covering all major energy sources including gas, coal, nuclear and renewables.
• Climate Change and Energy Transition: Decarbonisation, net-zero pathways and clean energy transitions have become central to its mandate.
• Critical Minerals Focus: The IEA has launched a Critical Minerals Programme to address supply chain risks linked to renewable energy and electric mobility.
• Rise of Emerging Economies: The global energy landscape has shifted with emerging economies such as China, India and Brazil becoming major energy producers and consumers.
• Broader Global Representation: While IEA members once accounted for over 60% of global energy demand, their share declined to about 40% before expanding through associate members, and the broader IEA now represents nearly 80% of global energy demand.

India’s quest for membership

• India’s Bid for Full Membership: India formally submitted its request for full membership to the IEA in 2023 and has been actively pursuing this objective in recent years.
• Desire for Decision-Making Role: India seeks full membership primarily to participate in the IEA’s decision-making processes, as the agency has become increasingly influential in shaping global energy policies, energy transition pathways, and climate-related strategies.
• IEA as a Knowledge and Policy Platform: The IEA has evolved into a key global knowledge platform on clean energy technologies, energy transitions and climate change, and it maintains one of the most reliable and comprehensive global energy databases.

Way Ahead

• Granting India full membership would require amendments to the IEA’s founding framework, since membership has so far been limited to members of the OECD.
  • India has shown no inclination to seek OECD membership, making changes to eligibility criteria or a legal amendment necessary.
• The IEA has strongly supported India’s bid, recognising it as the world’s most populous country and a future driver of global energy demand growth.
• IEA’s engagement with India has also increased significantly in recent years, engagement has deepened through India-focused reports.

Source: IE