Emirates NBD launches UAE’s first dedicated Transition Finance Framework

Emirates NBD has marked a significant milestone in its sustainable finance journey by pioneering the UAE’s first dedicated Transition Finance Framework to support corporate and institutional customers in their transformation to more sustainable business models.

The Transition Finance Framework establishes a clear 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 including manufacturing, mining, power and energy, real estate, transportation and storage, agriculture, and information technology.

Developed with reference to leading 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, the Framework supports clients whose activities may not yet qualify as “green”, but who are undertaking credible actions to reduce emissions and transition towards more sustainable business models.

Additionally, Emirates NBD has commissioned DNV Assurance to provide a Second Party Opinion, supporting the credibility and market alignment of the Framework. Corporate and institutional banking customers will benefit from improved access to transition finance solutions, clearer guidance on what types of activities may qualify as transition finance, support for investments linked to emissions reduction, energy efficiency, cleaner technologies and low-carbon business models and alignment with evolving investor, lender and regulatory expectations.

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.”

Emirates NBD supports the UAE Banking Federation’s ambition to mobilise Dhs 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.

WAM