Banking group Emirates NBD has announced the launch of the United Arab Emirates‘ first dedicated Transition Finance Framework, which will support corporate and institutional customers in reducing emissions and transitioning to more sustainable business models.
The framework establishes a methodology for ‘identifying, assessing and labelling transition finance activities that contribute to the decarbonisation of high-emitting and hard-to-abate sectors that are complex, capital-intensive, or technologically challenging’, Emirates NBD said in a statement.
This includes sectors such as manufacturing, mining, power and energy, real estate, transportation and storage, agriculture, and information technology.
It is intended to support clients whose activities may not yet meet the criteria for sustainable finance, but are undertaking ‘credible actions’ to reduce emissions or shift to lower-carbon operations.
‘Empower our clients’
“At Emirates NBD, our goal is to empower our clients with robust, transparent, and innovative transition finance solutions,” commented Vijay Bains, chief sustainability officer and group head of ESG at Emirates NBD.
“This new Framework expands our existing and established Sustainable Finance and Sustainability-Linked Loan Financing Bond Frameworks, ensuring we are fully equipped to support the real economy transition across the UAE and the wider region. By providing a consistent internal methodology to assess eligible transition activities and engage clients on credible transition opportunities, the Framework reinforces Emirates NBD’s role as a trusted partner in the region’s shift towards lower-carbon operations. In doing so, this initiative strengthens our commitment to mobilise $30 billion in sustainable and transition finance by 2030.”
The framework was developed with reference to international guidance, including the ICMA Climate Transition Finance Handbook, the ICMA Climate Transition Bond Guidelines 2025, and the Loan Market Association Guide to Transition Loan Finance 2025.
Sustainable finance
According to Emirates NBD, the framework also supports the UAE Banking Federation’s ambition to mobilise AED 1 trillion in sustainable finance by the end of the decade.
Emirates NBD, which boasts total assets of AED 1.3 trillion (around $354 billion), has operations in 13 countries across the Middle East, North Africa, Türkiye and South Asia region. Read more here.
