Emirates NBD Unveils UAE's First Transition Finance Framework

Aug 17, 2026

87 min

Aug 17, 2026 15:31

Emirates NBD launches UAE’s first Transition Finance Framework

## Supporting High-Emitting Sectors

Emirates NBD has introduced the UAE's first transition finance framework aimed at aiding industries with high carbon emissions in their shift towards more sustainable operations. This initiative is designed for corporate and institutional clients who are actively working to reduce emissions, enhance efficiency, or adopt cleaner technologies, even if they do not yet qualify as "green."

## Targeted Sectors

The framework focuses on sectors where reducing carbon emissions is particularly challenging or costly, such as manufacturing, mining, power and energy, real estate, transportation, agriculture, and IT. Transition finance is becoming a crucial component of sustainable investment, providing financial support to industries that cannot immediately transition to fully green operations.

## Methodology and Standards

Emirates NBD's framework establishes a consistent methodology for identifying and labeling activities eligible for transition finance. It aligns with international guidelines, including the ICMA Climate Transition Finance Handbook and the Loan Market Association Guide to Transition Loan Finance. The bank has also engaged DNV Assurance for a second-party opinion to ensure the framework's credibility.

## Strategic Goals

The framework aims to guide clients on qualifying activities for transition financing, such as investments in emissions reduction and cleaner technologies. It also helps borrowers meet evolving expectations from investors and regulators. Emirates NBD's Chief Sustainability Officer, Vijay Bains, emphasized the bank's commitment to providing innovative transition finance solutions and supporting the UAE's broader climate goals.

## Financial Targets

Emirates NBD has set a target to mobilize USD 30 billion in sustainable and transition finance by 2030, contributing to the UAE Banking Federation's goal of AED 1 trillion in sustainable finance by the same year. This initiative is part of the bank's broader efforts to channel capital towards activities that support decarbonization and industrial transformation.

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