International Energy Agency (IEA),
Definition of International Energy Agency (IEA):
An agency founded in 1974, within the framework of the OECD, to coordinate energy supply and demand worldwide. Its headquarters are in Paris.
The international agency based in Paris that was created during the oil crisis of 1973. It includes 28 countries and works to manage oil shortfalls while analyzing energy statistics. The IEA focuses on providing energy sources and economic development while protecting the environment.
The IEA is an autonomous body within the Organization for Economic Co-operation and Development, or OECD, framework. The governing board is the main decision-making body of the IEA, composed of energy ministers or their senior representatives from each member country. In addition, the IEA has several standing groups, committees and working parties made up of member country government officials, which meet several times a year. The IEA operates within the financial framework of the OECD. Also, countries and other energy stakeholders make voluntary contributions to support IEA programs. About a third of the IEA’s spending is financed by voluntary contributions, most of which are from government sources. It also receives funding from private sources and contributions in kind, especially staff on loan. The IEA is made up of 30 member countries. Before becoming a member country of the IEA, a candidate country must meet several criteria. It must have crude oil or product reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access even if it does not own them directly, and could be used to address disruptions to global oil supply. It must have in place a demand restraint program to reduce national oil consumption by up to 10 per cent. It must have a national plan in place for Coordinated Emergency Response Measures, or CERM. Also, all oil companies under its jurisdiction report information upon request. And it must be able to participate in any IEA collective actions.
The IEA works to ensure reliable, affordable and clean energy for its member countries and beyond. Its main areas of focus are energy security, economic development, environmental awareness and engagement worldwide.
Meaning of International Energy Agency (IEA) & International Energy Agency (IEA) Definition