Topics Covered: Important International institutions, agencies and fora, their structure, mandate.
International Energy Agency:
International Energy Agency (IEA) has released its India Energy Outlook 2021 report.
- India will make up the biggest share of energy demand growth at 25% over the next two decades, as it overtakes the European Union as the world’s third-biggest energy consumer by 2030.
- India’s energy consumption is expected to nearly double as the nation’s gross domestic product (GDP) expands to an estimated $8.6 trillion by 2040 under its current national policy scenario.
- India’s growing energy needs will make it more reliant on fossil fuel imports as its domestic oil and gas production has been stagnant for years despite government policies to promote petroleum exploration and production and renewable energy.
- India’s oil demand is expected to rise to 8.7 million barrels per day (bpd) in 2040 from about 5 million bpd in 2019, the IEA said, while its refining capacity will reach 6.4 million bpd by 2030 and 7.7 million bpd by 2040, from 5 million bpd.
- The world’s second-biggest net oil importer after China currently imports about 76% of its crude oil needs. That reliance on overseas oil is expected to rise to 90% by 2030 and 92% by 2040.
- Rising oil demand could double India’s oil import bill to about $181 billion by 2030 and nearly treble it to $255 billion by 2040 compared with 2019.
- Established in 1974 as per 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 Measures (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.
- Global Energy & CO2 Status Report.
- World Energy Outlook.
- World Energy Statistics.
- World Energy Balances.
- Energy Technology Perspectives.
- Various reports released by IEA.
- Composition of OECD and OPEC? Who can become members?
- Top crude oil producers and importers globally?
- Who are associate members of IEA?
- What kind of IEA member is India?
Write a note on objectives and functions of the International Energy Agency.
Sources: the Hindu.