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Source: The post India joining the IEA as a full member has been created, based on the article “India and the IEA: Friends with benefits?” published in “Business Standard” on 7th March 2024.
UPSC Syllabus Topic: GS Paper 2 – International relations – Important International institutions, agencies and fora, their structure, mandate
News: This article discusses India’s potential full membership in the International Energy Agency (IEA). It highlights the importance of including India, given its growing energy consumption and role in climate change.
About India joining the IEA
India requested to join the International Energy Agency (IEA) as a full member. This discussion started during IEA’s 50th anniversary.
India would be the first non-OECD (Organisation for Economic Co-operation and Development) country to join, reflecting the changing global energy landscape.
For information on IEA read here
What is the Significance of India Joining the IEA?
Benefits for India:
Enhanced Global Influence: As the world’s third-largest energy consumer, India’s full membership in the IEA can increase its global influence in energy decisions.
Energy Transition Support: India’s ambitious renewable energy goals, like tripling non-fossil electricity capacity by 2030, can gain support and expertise from the IEA.
Learning from IEA Expertise: India can benefit from the IEA’s experience in energy security and climate-proofing economies.
Benefits for IEA:
Reflecting Current Global Energy Trends: Including India reflects the shift in energy consumption from OECD countries to emerging economies.
Addressing Climate Change: India’s role in global energy consumption makes its participation crucial in global climate efforts.
Balancing Energy Needs with Climate Goals: The IEA can work with India to balance its rising energy needs, especially in fossil fuels, with global emission reduction targets.
What Challenges Exist in India Joining the IEA?
Differing Energy Priorities: India’s increasing fossil fuel consumption, including a potential 20% rise in oil use by the end of the decade, contrasts with the IEA’s focus on reducing fossil fuels.
New Coal Capacity Concerns: Plans to build 40-80 GW of new coal electricity generation in India conflict with the IEA’s stance against new coal capacity without expensive carbon removal technologies.
Oil Reserve Requirements: India currently has less than a week’s strategic oil reserve, far below the IEA requirement of a 90-day emergency reserve, posing a compliance challenge.
Balancing Economic Growth with Emission Reductions: Aligning India’s rapid economic growth with global emission reduction efforts presents a complex negotiation issue.
How does India’s energy consumption impact the world?
Major Contributor to Global Energy Demand: India’s growing population and economy significantly increase global energy demand.
Influence on Global Emissions: As a major greenhouse gas emitter, India’s energy choices directly affect global emissions. Its success in renewable energy and emission intensity reduction is crucial for global climate goals.
Setting a Precedent for Developing Nations: India’s path in balancing economic growth with sustainable energy practices can serve as a model for other developing countries.
Driving Global Energy Transition: India’s commitment to increasing renewables, like targeting a tripling of non-fossil electricity capacity by 2030, influences global energy market trends and investments.
Way forward
To move forward, the IEA and India should focus on mutual goals while respecting their differences. India’s energy growth and transition to renewables, like its ambitious 2030 targets, are key. Balancing India’s oil and coal usage with global climate goals is essential, requiring cooperation and understanding from both sides.
Question for practice:
Discuss the challenges India may face in aligning its energy priorities with the objectives of the International Energy Agency (IEA) and how these challenges could impact global energy dynamics and climate efforts.
