India Seeks to Join IEA

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