IEA: International Energy Agency

14 Oct 2021 IEA: International Energy Agency

• The International Energy Agency(IEA)has invited India, the world’s third-largest energy consumer, to become its full-time member.

Implications:

• The proposal if accepted will require New Delhi to raise strategic oil reserves to 90 days requirement. India’s current strategic oil reserves equal 9.5 days of its requirement.

Background:

• In March 2017, India became an associate member of IEA.

About IEA:

• Established in 1974 as per the framework of the OECD, IEA is an autonomous intergovernmental organisation.
• Its mission is guided by four main areas of focus: energy security, economic development, environmental awareness and engagement worldwide.
• Headquarters (Secretariat): Paris, France.

Roles and functions:

• Established in the wake of the 1973-1974 oil crisis, to help its members respond to major oil supply disruptions, a role it continues to fulfil today.
• IEA’s mandate has expanded over time to include tracking and analyzing global key energy trends, promoting sound energy policy, and fostering multinational energy technology cooperation.

Composition and eligibility:

• It has 30 members at present. IEA family also includes eight association countries. A candidate country must be a member country of the OECD. But all OECD members are not IEA members.
• To become member a candidate country must demonstrate that it has:
• 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 Co-ordinated Emergency Response Mesures (CERM) on a national basis.
• Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request.
• Measures in place to ensure the capability of contributing its share of an IEA collective action.

Reports:

• Global Energy & CO2 Status Report.
• World Energy Outlook.
• World Energy Statistics.
• World Energy Balances.
• Energy Technology Perspectives.

yojna ias daily current affairs 14 Oct 2021

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