EU supports IEA's closer ties with India 'within existing legal framework:' official

The European Union is supportive of the International Energy Agency's closer ties with India "within the existing legal framework," following the recent official launch of negotiations with the major energy consumer for its full membership, an EU official told S&P Global Commodity Insights Feb. 29.

The EU's comments came as a unanimous ministerial communique agreed Feb. 14 by 31 IEA members welcomed the start of discussions and constructive engagement with India following its request for a full membership.

Calling the results as a "revolutionary" outcome, IEA Executive Director Fatih Birol said: "We have decided as seen in our communique that we give a positive response that we are starting the journey of the discussions for India to become a full member."

India's potential membership could involve amending the IEA treaty or giving the major energy consumer a "quasi-full membership" upon securing unanimous agreements by all members while keeping the current treaty, according to Nobuo Tanaka, former IEA executive director, who initiated the agency's outreach to India in 2007.

The IEA, which operates under the framework of Organization for Economic Cooperation and Development, only allows OECD nations as members, as well as requires them to hold strategic oil stocks of 90 days of net imports and contribute to its collective actions in the event of major oil disruptions.

Asked if the EU would support India joining the IEA, the EU official said: "The European Union and India are closely cooperating on climate action and on ensuring affordable, clean and secure energy."

"The EU is supportive of closer IEA ties with India within the existing legal framework," the official said. "This allows global energy architecture to be more inclusive."

The EU also welcomes a recommendation in the IEA ministerial communique to non-IEA members to consider holding and maintaining emergency stocks as it mirrors the requirements of an EU directive for the IEA's collective strategic oil actions, the official added.

Gas security

The IEA ministerial communique also adopted measures to bolster the IEA's gas security role in light of a need for improvement in gas security following Russia's invasion of Ukraine.

Asked whether the EU expects to broaden its enhanced gas supply security measures to include countries outside the bloc, the EU official said: "We have proposed to the IEA partners an Early Warning Mechanism, as a means to quickly exchange information between public authorities about security of supply incidents and planned measures," given the globalization of gas markets.

The proposal comes as the EU has already been working on global energy security including through the IEA Task Force on gas security of supply to address risks for energy markets during the transition, structural volatility and global threats, the official said.

"We started a pilot phase with Japan and are discussing this with other partners including the US, Australia, South Korea and the UK," the official said, adding that this mechanism would allow quick exchange of reliable information from and facilitate communication between competent authorities.

"In addition, let us also recall our work under the EU Energy Platform, which includes outreach to third countries that supply gas," the official added.

Asked whether the EU is considering a ban on long-lead time oil and gas projects as part of measures to reach its net-zero emissions targets, the EU official said: "The energy mix remains a prerogative of the member states, as stated in the EU treaties."

"As part of a provisional agreement on the so-called decarbonized gases package, the EU co-legislators have recently agreed that long-term contracts for unabated fossil gas should not last beyond 2049."