Middle Eastern oil producers, Net-Zero is a phrase we hear a lot these days, as the world prepares for COP26. Certain Western economies are already on track to cut emissions, but in the oil-producing heartland of the world, the Arabian Gulf. Net-Zero is more of an abstract term. This weekend Saudi Arabia, the world’s largest Middle Eastern oil producer, committed to a Net Zero 2060 strategy. In doing so, it follows in the footsteps of its regional neighbour, the UAE, which has gone further in promising to be Net-Zero by 2050. As the world’s largest fossil fuel producer, ‘going green’. It may sound paradoxical, but Gulf governments clearly think otherwise. Their timing ahead of COP26 is far from coincidental. There is no doubt that these economies plan to keep the oil flowing for the foreseeable future, which is an unavoidable economic reality not just for them, but for global energy security. However, there is a marked difference in tone with the oil-rich OPEC nations not only reluctantly accepting the need to become greener as a fait accompli, but proactively taking steps to do so. Especially as we approach COP26. The scale of announcements coming out of the region seems to be growing larger by the week. Saudi Arabia, for example, has pledged to bring the world’s largest green hydrogen power plant, powered entirely by renewables, online by 2026. Elsewhere, in something of a coup, Abu Dhabi was announced as the host of COP28, a first for the region, in a sign of the changing times. Clearly the Gulf is betting that a greener stance will pay off in the long term. However, that doesn’t mean Gulf states are going to put their oil interests aside. In a potentially game-changing decision, several national oil entities are considering integrating full-scale renewable energy supplies into their own operations. Developing a short- to medium-term model whereby the energy transition can occur alongside hydrocarbon production is crucial for the global economic outlook. The ongoing energy crises in Europe, China and even the US have shown that there is a big difference between OECD-based energy transition strategies, which largely target wind and solar, and the reality that hydrocarbons remain the backbone of the global energy and economic system. However, oil producers’ licenses to operate have come under intense pressure. As activism, investors and politicians have pushed for divestment around the world. In the face of this, options for private international oil companies (IOCs) are limited, but national oil companies (NOCs) like ADNOC have more room to adjust. The use of renewable energy will not only reduce emissions associated with hydrocarbon production, but also increase opportunities for renewable production expansion around the world. Integrating renewable energy is a major step towards a net-zero oil and gas production chain. ADNOC’s work with major renewable energy producers in the United Arab Emirates (UAE) is not new. The company has already pledged direct support to a number of renewable energy projects in the country. However, this latest move dramatically increases the scale of this support. The use of a mix of solar and nuclear energy makes ADNOC a world-leading supplier of low-carbon oil and gas products. In the future trade scenario, the lowest carbon oil and gas producers will reap the rewards as carbon intensity becomes a bigger factor in the cost of doing business. Ahead of COP26, it appears the world's largest hydrocarbon producers are proposing their own version of an energy transition, one that sees oil and renewables coexisting. That's the news about "Middle East Oil Producers Make Renewable Energy Pledge" from GICTrade. Also read other complete news and articles about commodities and forex in the GIC Journal such as "What are Commodities? Types, and Their Benefits". Also train your trading skills by reading the ebook scalping guide and taking trading classes at the forex academy.