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IEA invites India to become full-time member

  • Category
    International Relations
  • Published
    19th Oct, 2021

Context

International Energy Agency (IEA) has invited India, the world's third-largest energy consumer, to become its full-time member - a proposal if accepted will require New Delhi to raise strategic oil reserves to 90 days requirement.

About

About the International Energy Agency

  • The International Energy Agency is an autonomous Intergovernmental Organisation.
  • The IEA was established in 1974 by developed countries - under the auspices of the Organization for Economic Co-operation and Development (OECD) - in response to the oil embargo.
  • IEA is made up of 30 member countries and eight associate nations. Four countries are seeking accession to full membership - Chile, Colombia, Israel and Lithuania.
    • India became an Associate member of IEA in March 2017 but it was in engagement with IEA long before its association with the organization.
  • The World Energy Outlook report is released by the IEA annually.
  • Its purpose is guided by four main areas of focus:
    • Energy security
    • Economic development
    • Environmental awareness
    • Global engagement

Roles and responsibilities

  • It was founded in the wake of the 1973-1974 oil crisis to help its members respond to the massive disruption of the oil supply, a role that continues to be fulfilled today.
  • The IEA mandate has expanded over time to include monitoring and analyzing global energy trends, promoting sound energy policy, and promoting international technology cooperation.

What if India becomes its member?

  • Countries that want to become members of the IEA must also be members of the OECD and hold 90 days of oil importation as commercial stocks.
    • The proposal, if approved, will require India to increase oil shares within 90 days.
      • Current strategic oil reserves equal to 9.5 days of its need.
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