Context: The International Energy Agency (IEA) trimmed its forecast for 2024 oil demand growth. Global oil demand in 2024 will grow by 1.1 million barrels per day (bpd), the Paris based IEA said in a monthly report. The lower forecast was linked to poor industrial activity and weakening gasoil consumption, particularly in Europe, where a declining share of diesel cars was undercutting consumption.
About International Energy Agency (IEA):
- A Paris-based autonomous intergovernmental organisation.
- Established: 1974
- Provides policy recommendations, analysis and data on the global energy sector.
- Since its founding, the IEA has also coordinated use of the oil reserves that its members are required to hold.
- Membership:
- Founding members: Austria, Belgium, Canada, Denmark, Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway (under a special Agreement), Spain, Sweden, Switzerland, Turkey, United Kingdom, and the United States.
- Lithuania is the latest member joining the IEA in 2022.
- Full members of the IEA must also be members of the OECD and are required to maintain total oil stock levels equivalent to at least 90 days of the previous year's net imports.
- These emergency stocks can be released to stabilize oil markets worldwide and have been activated five times: January 1991 due to the Gulf War.
- 31 member countries and 13 association countries of the IEA represent 75% of global energy demand.
- India, which joined the IEA Family as an Association country in 2017, sent a formal request for full membership to IEA in 2023. India becoming an IEA member would mark a huge, consequential change in international energy governance.
- History:
- It 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.
- The Agreement on an International Energy Program (IEP Agreement) established the mandates and structure of the IEA.
- 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.
- Recently, it has focused in particular on supporting global efforts to accelerate clean energy transition, mitigate climate change, reach net zero emissions, and prevent global temperatures from rising above 1.5 °C.
- Key Publications:
- World Energy Outlook (WEO): The annual World Energy Outlook (WEO) is the International Energy Agency's (IEA) flagship publication on global energy projections and analysis. It contains medium to long-term energy market projections.
- Energy Technology Perspectives (ETP): First issued in 2006, ETP is a bi-annual guidebook on clean energy technology. The publication focuses on challenges, growth areas, and strengths of emerging clean energy technologies.
- Global EV Outlook (GEVO): Published annually with the support of the members of the Electric Vehicles Initiative, GEVO highlights and analyses recent developments in EVs and electric mobility.