The International Energy Agency (IEA) is an autonomous intergovernmental organization based in Paris, established in 1974 under the framework of the Organisation for Economic Co-operation and Development (OECD). Its creation was a direct response to the 1973 oil crisis, where an oil embargo by major producers exposed the vulnerability of industrialized countries to oil import dependency. The IEA was founded to solve the problem of physical disruptions in global oil supplies and to ensure reliable energy security for its members.
The core mechanism of the IEA is its Emergency Response system, which requires member countries to maintain strategic oil reserves equivalent to at least 90 days of their net oil imports. In the event of a major supply disruption, the IEA can coordinate the collective release of these reserves to stabilize markets and mitigate price spikes. Beyond this initial mandate, the IEA's role has expanded to focus on the "3Es" of energy policy: energy security, economic development, and environmental protection, with the latter focusing on climate change mitigation.
The IEA connects to the OECD, under whose umbrella it was established, and works closely with other international bodies like the G7 and G20. It provides policy advice, comprehensive data, and analysis, notably through its annual flagship publication, the World Energy Outlook (WEO). India is an Association country of the IEA, having become one in March 2017, which allows for deeper cooperation on energy security and policy analysis. The IEA's mandate has changed recently, expanding to cover the entire global energy system, including clean energy sources like solar, wind, and hydrogen, and focusing on pathways to net-zero emissions in line with the 2015 Paris Agreement. However, the core function of oil supply security and the requirement for strategic reserves have stayed the same.