Emirates NBD launches UAE’s first Transition Finance Framework

Emirates NBD has launched what it says is the UAE’s first dedicated transition finance framework, creating a formal structure to help companies in high-emitting industries secure funding as they move towards lower-carbon business models.

The framework is designed for corporate and institutional clients whose activities may not yet qualify as “green”, but who are taking measurable steps to cut emissions, improve efficiency or adopt cleaner technologies.

It covers sectors where decarbonisation can be particularly difficult or capital-intensive, including manufacturing, mining, power and energy, real estate, transportation and storage, agriculture and information technology.

Transition finance has become an increasingly important part of sustainable investment as banks and companies seek ways to fund emissions reductions in industries that cannot rapidly shift to fully green operations.

The framework sets out a consistent methodology for identifying, assessing and labelling activities that qualify for transition finance.

It 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.

Emirates NBD has also commissioned DNV Assurance to provide a second-party opinion on the framework, supporting its credibility and alignment with prevailing market standards.

The bank said the framework would give corporate and institutional clients clearer guidance on which activities could qualify for transition financing, including investments in emissions reduction, energy efficiency, cleaner technologies and lower-carbon business models.

It is also intended to help borrowers respond to evolving expectations from investors, lenders and regulators.

Vijay Bains, Chief Sustainability Officer and Group Head of ESG at Emirates NBD, said: “At Emirates NBD, our goal is to empower our clients with robust, transparent, and innovative transition finance solutions. 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 USD 30 billion in sustainable and transition finance by 2030.”

Emirates NBD supports the UAE Banking Federation’s ambition to mobilise AED 1 trillion in sustainable finance by 2030, by setting the bank’s own target of USD 30 billion by 2030. By strengthening its sustainable finance platform with a dedicated transition finance approach, Emirates NBD is accelerating efforts to achieve this goal while supporting the UAE’s wider climate and economic ambitions by helping channel capital towards activities that can contribute to decarbonisation, industrial transformation and long-term resilience.