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International Energy Agency (IEA) and India |

International Energy Agency (IEA) and India

Context:

∙ Recently, the International Energy Agency (IEA) agreed to start discussions with India to become a full member.

About the IEA

∙ It is a Paris-based intergovernmental organisation of 31 nations.

∙ It was established in 1974 as a response to physical disruptions in global oil supplies and to promote energy savings and conservation.

∙ It aims to promote reliable, affordable, and clean energy for its member countries and the rest of the world.

∙ It advises industrialised nations on energy policies.

International Energy Agency (IEA) and India |

Criteria For Membership of IEA

∙ The Agreement on an International Energy Program (IEP Agreement) established the mandates and structure of the IEA under the umbrella of the Organisation for Economic Co-operation and Development (OECD).

∙ A candidate country to the IEA must be a member country of the OECD.

∙ Crude oil and/or product 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;

∙ 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;

International Energy Agency (IEA) and India |

Current Members

∙ Currently, it has 31 member countries, 13 association countries, and 5 accession countries.

∙ Association countries was formally launched in 2015 and currently includes 11 countries including India, Brazil, China, South Africa.

∙ Countries are seeking accession to full membership: Chile, Colombia, Israel, Latvia and Costa Rica.

Rationale Behind India’s Full Membership of IEA

∙ Global Energy Governance: India becoming an IEA member would mark a consequential change in international energy governance.

∙ It includes collaboration across the full spectrum of the energy sector, with a focus on both energy security and clean energy transitions.

∙ Earlier, India had inked a strategic partnership agreement with the IEA to strengthen cooperation in global energy security, stability, and sustainability.

∙ Energy Security: As the world’s most populous country, India is set to play an increasingly central role in efforts to safeguard energy security.

∙ Rapid Growth and Urbanisation: India is the world’s fastest-growing major economy.

∙ In the next three decades, India is poised to see the largest energy demand growth of any country in the world as industrialization and urbanisation surge and per capita income rises sharply.

∙ The IEA believes that the world cannot plan for its energy future without India at the table.

∙ Energy Transitions and Climate Change: India’s membership would drive inclusive energy transitions.

∙ Renewable electricity is growing at a faster rate in India than any other major economy, with new capacity additions on track to double by 2026.

∙ India’s role in the IEA would be crucial in combating climate change.

∙ Mutual Trust and Cooperation: Full members strengthen mutual trust and cooperation, enhancing global energy security, stability, and sustainability.

∙ Knowledge Exchange: Full membership leads to an extensive exchange of knowledge.

∙ It brings talent, technology, and innovation to the table.

Do you know?– India undertakes some of the world’s largest energy access initiatives, and has surpassed its Paris climate targets ahead of schedule and remains firmly committed to addressing the global issue.– India achieved its emissions intensity-related targets 11 years ahead of the committed time-frame and non-fossil fuel targets nine years ahead of schedule.International Energy Agency (IEA) and India |– India aims to reduce emissions intensity of Gross Domestic Product by 45% by 2030 from 2005 levels and achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.It has also committed to become a net-zero economy by 2070.– India’s proactive approach in leading initiatives like the International Solar Alliance and the Mission LiFE, which focuses on pro-planet lifestyle choices.

Key Concerns in Membership

∙ OECD Membership: Full membership prerequisites include OECD membership.

∙ Currently, India is not a member of the OECD.

∙ Strategic Oil Reserves: Full members are required to maintain strategic oil reserves equivalent to 90 days of net imports.

∙ India’s current strategic oil reserves equal 9.5 days of its requirement, and together with storage at refineries and depots, it maintains a stockpile equivalent of 66 days requirement.

∙ This could be a significant challenge for India given its high energy consumption and dependence on oil imports.

∙ Energy Policies: As a full member, India would need to align its energy policies with those of the IEA.

∙ It could involve significant changes to India’s current energy policies and strategies.

Conclusion

∙ India’s carbon emissions account for about 4% of the global total despite it being home to 17% of the global population.

∙ As a large developing economy, India’s climate adaptation and mitigation ambitions are not just transformational for India but for the entire planet.∙ NITI Aayog and IEA are committed to work together to enable India to grow, industrialise and provide a better quality of life to its citizens without the need to carbonise.

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