The oil-shock agency: how the IEA grew from crisis response to clean energy
The International Energy Agency was founded on November 18, 1974, in the wake of the 1973 oil crisis, to keep oil flowing through emergencies. Its members must still hold 90 days of oil imports in reserve, but its remit now spans solar, wind, hydrogen and the minerals clean technology needs.
Set up under the umbrella of the OECD, the agency followed a 7,000-word draft agreement that notably left out France. The Agreement on an International Energy Program gave it an autonomous charter, its own budget and governance, and a mandate to cut dependence on oil, develop alternative energy, fund research and work with oil producers. In 1996 it moved its headquarters from the Château de la Muette, shared with the OECD, to leased space in the Embassy of Australia in Paris.
Sixteen countries founded it, and Lithuania joined in 2022. Full members must belong to the OECD and draw up plans to curb demand and boost efficiency in an emergency. Coordinated releases of their stocks were triggered during the Gulf War in January 1991, after hurricanes Katrina and Rita in 2005, during the Libyan crisis in 2011, and twice in 2022 after Russia invaded Ukraine.
Fatih Birol, previously chief economist, became executive director in September 2015, the first insider picked to lead it. He set out to extend energy security beyond oil to gas and electricity, deepen ties with emerging economies through association partnerships, and put clean technology and efficiency at the centre. Its flagship report is the annual World Energy Outlook, alongside the Net Zero by 2050 roadmap.
Today its 32 members and 13 association countries account for 75 percent of global energy demand. Every member is a signatory to the Paris climate accord and its 1.5 degrees Celsius goal, and two thirds of member governments have pledged emission neutrality by 2050, though the United States has withdrawn from the agreement twice.
Source: International Energy Agency
