Facts for Prelims (FFP)
Source: IEA
Context: The International Energy Agency has released the World Energy Investment Report 2023
Key findings of the Report:
| Key Findings | Summary |
| Investment in clean energy has increased in recent years | Investments in clean energy have surpassed investments in fossil fuels by 70%; Transition driven by Electric Vehicles (EVs) and renewable power; $1.7 allocated to clean energy for every $1 spent on fossil fuels. |
| Clean energy investments concentrated in advanced economies | Over 90% of the surge in clean energy investment since 2021 is in advanced economies and China; India shows strong investment in solar energy. |
| Challenges in transitioning towards clean energy | Hurdles include higher interest rates, ambiguous policy frameworks, market designs, financially constrained utilities, and high cost of capital. |
About International Energy Agency
| International Energy Agency (IEA) | |
| The IEA is an inter-governmental organization (HQ: Paris) that ensures the security of oil supplies and promotes energy cooperation among member countries | |
| Background | Established in 1974 to ensure the security of oil supplies (in the wake of the oil crisis of 1973-1974); It is within the OECD framework |
| Focus | It mainly focuses on its energy policies which include economic development, energy security and environmental protection. These policies are also known as the 3 E’s of IEA.
|
| Mission | Ensure reliable, affordable and clean energy for its member countries and beyond.
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| Membership | 30 member countries; 8 association countries (including India); 3 accession countries. |
| Eligibility criteria for membership | A candidate country must be a member of the OECD; have 90 days of strategic oil reserves, have a demand restraint program to reduce oil consumption by up to 10%, have legislation for emergency response measures, have reporting obligations for oil companies, etc. |
| India’s association with IEA | Became an Associate Member in 2017; It inked a Strategic Partnership Agreement with IEA in 2021; It was invited to become a full-time member. |
| Major Reports | World Energy Outlook Report; World Energy Investment Report; World Energy Statistics; World Energy Balances; Energy Technology Perspectives; India Energy Outlook Report |
