BRICS Energy Policy Stumbles Over Producer-Consumer Divide

The BRICS energy policy faces significant challenges due to its producer-consumer divide and lack of institutional framework. The grouping, which comprises major producers such as Russia, Saudi Arabia, Iran, and the United Arab Emirates, and major consumers like India and China, accounts for roughly 41% to 47% of global crude oil production.

The scale of BRICS's energy presence is substantial, with a broader BRICS+ calculation putting its share above 42% of global crude production. However, the grouping's energy diversity extends beyond hydrocarbons, with some members seeking to expand renewable-energy manufacturing capacity.

This creates a policy challenge as BRICS needs to accommodate competing economic structures and priorities among its members. A single energy agenda would have to address the producer-consumer divide, differing positions on energy transition, manufacturing, and future supply chains.

Burzine Waghmar of the SOAS South Asia Institute at the University of London notes that BRICS cannot serve as a safety net during energy crises or global resource crunches due to its lack of an institutional framework, unified political will, and physical infrastructure required to manage real-time supply or price disruptions.

The upcoming New Delhi meeting on September 12 and 13 is expected to discuss energy security, the West Asia conflict, and trade. However, the grouping's ability to move from broad declarations of importance towards mechanisms that address concrete energy vulnerabilities remains uncertain.