Emirates NBD Introduces UAE's First Transition Finance Framework

Emirates NBD has unveiled the UAE’s first dedicated Transition Finance Framework, aimed at facilitating corporate and institutional clients in their efforts to adopt more sustainable, lower-carbon operating models. The framework provides a structured methodology for identifying and evaluating financing activities that contribute to environmental transition, particularly within high-emitting and hard-to-abate sectors.

Sectors and Scope

The framework is applicable to a wide array of industries, including manufacturing, mining, power and energy, real estate, transport and storage, agriculture, and information technology. It is specifically tailored for businesses whose current operations may not yet meet 'green' criteria but are actively pursuing credible strategies to reduce emissions and enhance energy efficiency. This includes investments in emissions reduction technologies, energy efficiency improvements, cleaner technologies, and the adoption of lower-carbon business models.

International Alignment and Assurance

Developed in adherence to international best practices, the framework references guidelines such as the ICMA Climate Transition Finance Handbook, the ICMA Climate Transition Bond Guidelines 2025, and the Loan Market Association’s Guide to Transition Loan Finance 2025. To ensure credibility and robustness, Emirates NBD commissioned DNV Assurance to provide a second-party opinion on the framework's design and methodology.

Strategic Impact

The initiative significantly expands Emirates NBD's existing sustainable finance capabilities and supports its ambitious target to provide $30 billion in sustainable and transition finance by 2030. This framework is expected to channel capital towards vital activities for decarbonisation, industrial transformation, and fostering long-term resilience within the economy. It also contributes to the UAE Banking Federation's broader objective of achieving AED 1 trillion in sustainable finance by the same year, strengthening the bank's ability to support companies transitioning to more sustainable operations.