Prime Highlights
- Emirates NBD launched the UAE’s first dedicated Transition Finance Framework.
- The framework will support companies in high-emission and hard-to-abate sectors.
Key Facts
- Emirates NBD aims to mobilise $30 billion in sustainable and transition finance by 2030.
- The framework covers sectors including energy, manufacturing, mining, transport and real estate.
Background
Emirates NBD has launched the UAE’s first dedicated Transition Finance Framework to help companies move towards cleaner and more sustainable business models.
The framework sets rules to identify and assess projects that can reduce emissions in industries that are difficult to decarbonise. These include manufacturing, mining, power and energy, real estate, transport, agriculture and information technology.
The framework supports companies that may not yet qualify for green financing but are taking clear steps to cut emissions. It can help fund projects focused on lower emissions, energy efficiency, cleaner technologies and low-carbon business models.
Emirates NBD developed the framework using international guidelines from the International Capital Market Association and the Loan Market Association. The bank has also appointed DNV Assurance to provide an independent Second Party Opinion on the framework.
The new system is expected to give corporate and institutional customers clearer access to transition finance. It will also help companies meet changing expectations from investors, lenders and regulators.
Vijay Bains, chief sustainability officer and group head of ESG at Emirates NBD, said the framework strengthens the bank’s ability to support businesses moving towards lower-carbon operations. He added that it builds on the bank’s existing sustainable finance and sustainability-linked financing frameworks.
Emirates NBD aims to mobilise $30 billion in sustainable and transition finance by 2030. The bank said the framework will support the UAE’s wider climate and economic goals by directing capital towards decarbonisation, industrial transformation and long-term resilience.
