Economy News

India starts talks with IEA for full membership

India had sent a formal request to the IEA for a full membership in October 2023. It joined the IEA as an association country back in 2017.

Member countries of the International Energy Agency (IEA) have agreed to initiate discussions with India on its request to become a full member of the organisation, the agency has said. 

Ministers from the 31 member countries made the announcement in a joint communique after the IEA’s 2024 Ministerial Meeting and 50th Anniversary events in Paris from February 13-14.

India had sent a formal request to the IEA for a full membership in October 2023. It joined the IEA as an association country back in 2017.

“India becoming an IEA member would mark a huge, consequential change in international energy governance,” the agency said. “As the world’s most populous country, India is set to play an increasingly central role in efforts to safeguard energy security, drive inclusive energy transitions, and combat climate change.”

IEA  has projected India’s oil demand to grow by 1.2 million barrels a day between 2023 and 2030. This will account for more than a third of the projected global demand growth of 3.2 million barrels per day, overtaking that of China.

“India is the world’s fastest growing major economy. Sustained growth needs energy security and sustainability,” said Prime Minister Narendra Modi. Highlighting that inclusivity boosts the credibility and capability of any institution, he said 1.4 billion Indians bring talent, technology and innovation to the table. “We bring scale and speed, quantity and quality to every mission. I am sure that the IEA will benefit when India plays a bigger role in it,” Modi said.

Recognising this as a major milestone for international energy governance, IEA executive director Fatih Birol said, “We are very happy that ministers from the IEA’s member countries have agreed to start membership talks with India…  A valued and indispensable partner of our agency, India plays a crucial and growing role in the global energy economy. The world cannot plan for its energy future without India at the table.”

In its report for the Indian oil market earlier this month, IEA had said India’s oil consumption is set to increase at a faster pace than other countries, in part, because the country is still in the initial stages of economic development.

Minister of external affairs S Jaishankar said, “India and IEA have been deepening their partnership in the last decade and India is pleased that IEA ministers have agreed to start discussions on India’s full membership following our request in October 2023. We look forward to continuing to engage with IEA members on the next steps.”

French president Emmanuel Macron reiterated his “full support for the agency’s efforts to welcome emerging economies, whether through the recent association of Kenya and Senegal or the launch of negotiations with India to join the IEA as a full member”.

Source:financialexpress.com

Leave a Reply

Your email address will not be published. Required fields are marked *