International Energy Agency Wikipedia

Autonomous intergovernmental organisation

The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the entire global energy sector, with a recent focus on curbing carbon emissions and reaching global climate targets, including the Paris Agreement. The 31 member countries and 11 association countries of the IEA represent 75% of global energy demand.[1]

The IEA was set up under the framework of the Organisation for Economic Co-operation and Development (OECD) in the aftermath of the 1973 oil crisis to respond to physical disruptions in global oil supplies, provide data and statistics about the global oil market and energy sector, promote energy savings and conservation, and establish international technical collaboration on innovation and research.[2] Since its founding, the IEA has also coordinated use of the oil reserves that its members are required to hold.

In subsequent decades, the IEA’s role expanded to cover the entire global energy system, encompassing traditional fuels such as gas, and coal as well as cleaner and fast-growing energy sources and technologies including renewable energy sources; solar photovoltaics, wind power, biofuels as well as nuclear power, and hydrogen, and the critical minerals needed for these technologies.

The core activity of the IEA is providing policy advice to its 31 member states, as well as to its 11 Associated countries, which include Argentina,[3] Brazil, China, India, Indonesia, South Africa, Ukraine, Singapore, Thailand, Egypt and Morocco to support their energy security and advance their transition to clean energy.[2] The Agency publishes policy recommendations and solutions to help all countries ensure secure, affordable and sustainable energy, as well as analysis, roadmaps, policy reviews, detailed data on more than 150 countries. Recently, it has focused in particular on supporting global efforts to accelerate clean energy transition, mitigate climate change, and reach net zero emissions.[4]

As the COVID-19 pandemic set off a global health and economic crisis in early 2020, the IEA called on governments to ensure that their economic recovery plans focus on clean energy investments in order to create the conditions for a sustainable recovery and long-term structural decline in carbon emissions.[1][5]

In May 2021, the IEA published a roadmap for the global energy sector to reach net zero emissions by 2050 and to prevent global temperatures from rising above 1.5 °C.[6] All IEA member countries have signed the Paris Agreement which aims to limit warming to 1.5 °C, and two thirds of IEA member governments have made commitments to emission neutrality by 2050.

In March 2022, the IEA’s Ministerial Meeting gave the agency a broader mandate to focus on the clean energy transition.[7][8] The IEA has been criticised for historically undervaluing the role of renewable energy sources such as photovoltaics in future energy systems as well as under-estimating their declining cost. Environmental groups, investors and companies have been urging the IEA to do more to support the implementation of the Paris Agreement.[6]

The IEA’s current executive director is Fatih Birol, who took office in late 2015.[9] Birol was re-appointed for a third term in March 2022.[10] It publishes a range of reports and other information including its flagship publication, the annual World Energy Outlook, as well as the Net Zero by 2050 report.[7][8][11]

History[edit]
The IEA was founded on November 18, 1974, after the 1973 oil crisis, to avoid future shocks by helping to ensure reliable energy supplies, promote energy efficiency, ensure energy security and encourage technological research and innovation.[12][1]

The Agreement on an International Energy Program (IEP Agreement) established the mandates and structure of the IEA, chartering it as an autonomous organisation under the umbrella of the Organisation for Economic Co-operation and Development (OECD).[1]

The IEA operates autonomously, with its own budget and governance structure. The organization began with 16 founding member countries and has since expanded to 31, with the latest addition being Lithuania in 2022. Full members of the IEA must also be members of the OECD and are required to hold 90 days worth of oil imports as emergency stocks. These emergency stocks can be released to stabilize oil markets worldwide and have been activated five times: January 1991 due to the Gulf War, 2005 after devastation in the Gulf of Mexico from hurricanes Katrina and Rita, 2011 during the Libyan crisis, and twice in 2022 in response to the Russian invasion of Ukraine.[1][13]

In addition to the emergency release mechanism, the IEA’s initial mandates include reducing dependence on oil, developing alternative energy sources, energy research and development, and collaboration with oil-producing companies and countries to create a stable energy market. Members are expected to draw up plans on demand reduction and efficiency measures that can be implemented during energy emergencies.

In 2015, the IEA’s chief economist Dr. Fatih Birol was appointed executive director, the first time an official from within the organization was picked to lead it.[14] They have a mandate to modernize the agency on three major pillars: broadening the IEA’s mandate on energy security beyond oil to include natural gas and electricity; increasing engagement in emerging economies through new Association partnerships; and expanding the IEA’s core focus on clean energy technology and energy efficiency.[1][15]

The new category of “Association countries” was created in 2015,[16] allowing countries that do not fit the criteria for IEA membership to become affiliated with the organization and participate in its work.[17] China, Indonesia, and Thailand were the first to join and the IEA now has eleven Association countries, including Ukraine since July 2022.[18][19] IEA member and Association countries represent over 75% of global energy consumption.[1]

After the IEA’s 2022 Ministerial meeting, a bi-annual high-level meeting of IEA countries, member countries once again expanded the organisation’s mandate to include accelerating the global clean energy transition by “supporting countries in the global effort to attain net zero greenhouse gas emissions in the energy sector by mid-century.”[7][1] The “IEA 3.0” mandate also doubles down on strengthening energy security and recognizes the importance of tracking critical minerals and materials to the clean energy transition.[7][1]

Leadership[edit]
Structure[edit]
The IEA’s structure includes a Governing Board, Ministerial Meetings, and Standing Groups and Committees.[31]

The Governing Board constitutes the main decision-making body of the organisation. It is composed of member country representatives and meets three to four times a year.[31] The Governing Board is responsible for the IEA’s administrative proceedings and approving binding decisions in relation to energy developments.[31]

The IEA Ministerial Meeting is the biennial gathering of energy ministers who determine the broad direction of the IEA.[31] The Ministerial allows for the development of ideas which are subsequently put to the Governing Board.[31]

Standing Groups meet multiple times a year and are made up of officials from member states. The IEA has several Standing Groups and Committees, focusing on energy research and technology, long-term cooperation, emergency preparedness, and other topics.[31]

Membership[edit]
The 31 member countries and 11 association countries of the IEA represent 75% of global energy demand.[1]

Member countries[edit]
Only OECD member states may join the IEA. Member are required to maintain total oil stock levels equivalent to at least 90 days of the previous year’s net imports.[32][2] Member countries commit to respond to significant oil disruptions through a collective action to allow more crude oil to enter the global market.[2]

Accession countries[edit]
Accession countries are those going through the process of becoming full members. The process involves authorisation by the Governing Board, discussions with the executive director, and the sharing of information related to the criteria for membership with the Secretariat.[37]

The following countries are currently undergoing the accession process:

Association countries[edit]
Association was formally launched in 2015 and currently includes 11 countries. The IEA collaborates with Association countries on a wide range of energy-related issues determined through joint programmes of work. Association countries may also participate in most Standing Groups and Ministerial meetings.[38] Egypt and Argentina joined as Association countries in March 2022,[7][39] and Ukraine was formally invited on 16 June 2022, and joined in July 2022.[40]