What Significance does it have for India to become a member of IEA

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According to Union Housing and Petroleum Minister Hardeep Singh Puri, India has been invited to join the International Energy Agency (IEA) as a full-time member by its Executive Director Fatih Birol. Dr. Birol asked India to deepen its engagement with the IEA by becoming a full member, the Minister added, as a natural corollary to the India-IEA strategic alliance.

Dr. Fatih Birol, the IEA Executive Director, lauded India's important achievements under PM Narendra Modi's leadership to enhance energy access for its inhabitants, such as the PM Ujjwala Yojana and UJALA programs, during a productive online talk with the Union Minister.

About The International Energy Agency

  • The International Energy Agency (IEA) is a Paris-based organization that was established in 1974 by industrialized countries to assure the security of the oil supply in the aftermath of the 1973 oil crisis.
  • The organization was established under the auspices of the Organisation for Economic Cooperation and Development (OECD) (OECD). I
  • t was designed to respond to physical disturbances in the oil supply at first. While energy security remains a primary purpose, the IEA has changed throughout time and now focuses on a wide range of topics, including power security, climate change, air pollution, energy success, investments, and energy efficiency.
What are the requirements to become a member of  IEA?

There are 30 member countries, eight association countries, and four accession countries in the IEA family.
  1. According to the IEA, a member country must keep "crude oil and/or product reserves equivalent to 90 days of net imports from the previous year, to which the government has ready access (even if it does not control them directly) and might be utilized to resolve global oil supply shortages."
  2.  10-percent reduction in national oil consumption through demand restraint;
  3. To implement the Co-ordinated Emergency Response Measures (CERM) on a nationwide scale, legislation and organization are required.
  4. Legislation and other measures to ensure that all oil firms operating under its authority are required to submit information upon request;
During this time, the IEA Secretariat advises and works with the applicant country to advance the accession process. The Governing Board of the International Energy Agency makes the final decision on a country's membership.

What Significance does it have for India ?
  • If India accepts the plan to join the International Energy Agency full-time, it will have to increase its strategic oil stocks to meet the 90-day criteria. India's current strategic oil reserves are enough to meet the country's needs for 9.5 days.
  • According to an in-depth assessment of India's energy policies released in January 2020, the country's energy demand is predicted to rise significantly in the future decades, with electricity use rising at a particularly rapid rate.
  • Increased cooperation between India and the IEA will help to promote development in a variety of sectors, including global energy security, global energy governance, and the utilisation of renewable energy resources.
  • In a previous analysis, the IEA stated that India's reliance on imported fuel made ensuring energy security a top concern for the Indian economy. India currently boasts the world's fastest-growing energy market.

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