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India signs Strategic Partnership Agreement with International Energy Agency (IEA)

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    28th Jan, 2021

Context

  • The Framework for Strategic Partnership between the International Energy Agency (IEA) members and the Government of India was signed on 27th January, 2021.

Key-takeaways of the Agreement

  • Aim: The agreement aims to strengthen mutual trust and cooperation, and enhance global energy security, stability and sustainability. 
  • Under the framework of this newly formed alliance, India will establish with the IEA the key steps for enhancing energy security and substantive cooperation across the full spectrum of IEA activities.
  • The contents of the Strategic partnership will be jointly decided by the IEA Members and India, including:
    • a phased increase in benefits and responsibilities for India as an IEA Strategic partner
    • building on existing areas of work within Association and the Clean Energy Transitions Programme (CETP), such as:
      • Energy Security
      • Clean & Sustainable Energy
      • Energy Efficiency
      • Enhancing petroleum storage capacity in India
      • Expansion of gas-based economy in India etc.
    • Implementing agency: The IEA Secretariat will be responsible for implementation of the cooperative activities in India and for facilitating discussion between the IEA Members and India to further develop the Strategic Partnership.

Global Energy Trends & India

  • India is becoming increasingly influential in global energy trends.
  • According to the IEA’s in-depth report on India’s energy policies, which was released in January 2020, the country’s demand for energy is set to grow rapidly in the coming decades, with electricity use set to increase particularly fast.
  • The country’s reliance on fuel imports makes further improving energy security a key priority for the Indian economy.

Benefits of the MoU

  • Global energy governance: The agreement is a huge step forward for global energy governance.
  • IEA membership: This partnership will lead to an extensive exchange of knowledge and would be a stepping stone towards India becoming a full member of the IEA.

IEA

  • The International Energy Agency is a Paris-based autonomous intergovernmental organisation.
  • It was established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis.
  • The IEA acts as a policy adviser to its member states, but also works with non-member countries, especially China, India, and Russia.
  • India is the associate member of IEA.
  • The Agency's mandate has broadened to focus on the "3Es" of effectual energy policy: 
    • energy security
    • economic development
    • environmental protection
  • IEA member countries are required to maintain total oil stock levels equivalent to at least 90 days of the previous year's net imports.
  • The IEA has also been criticized for failing to create a 1.5°C scenario and place it centrally in its annual World Energy Outlook report.