• Emirates NBD has introduced the UAE’s first dedicated Transition Finance Framework for hard-to-abate sectors.
• The framework covers industries including manufacturing, mining, energy, real estate, transport, agriculture and information technology.
• It supports Emirates NBD’s target to mobilise $30 billion in sustainable and transition finance by 2030.

Emirates NBD has launched the UAE’s first dedicated Transition Finance Framework, giving companies in carbon-intensive sectors a clearer route to financing decarbonisation projects.

The framework is designed for corporate and institutional clients whose activities may not yet meet conventional green finance criteria. Instead, it targets credible investments that can cut emissions and move businesses towards lower-carbon operating models.

For Emirates NBD, the framework also expands the tools available to deliver its target of mobilising $30 billion in sustainable and transition finance by 2030.

Financing the harder parts of decarbonisation

Transition finance has become an increasingly important part of the sustainable finance market. Many industries cannot immediately qualify for green financing because commercially viable zero-carbon alternatives remain limited.

Emirates NBD’s framework establishes a methodology for identifying, assessing and labelling eligible transition activities.

It focuses particularly on high-emitting and hard-to-abate industries. These include manufacturing, mining, power and energy, real estate, transportation and storage, agriculture and information technology.

Projects may include investments in emissions reduction, energy efficiency, cleaner technologies and lower-carbon business models.

The approach is intended to help companies finance credible transition measures while giving lenders and investors clearer criteria for assessing those activities.

Framework aligns with international guidance

Emirates NBD developed the framework with reference to several international standards.

These include the ICMA Climate Transition Finance Handbook and ICMA Climate Transition Bond Guidelines 2025. It also references the Loan Market Association Guide to Transition Loan Finance 2025.

DNV Assurance has provided a Second Party Opinion on the framework. The independent assessment is intended to support its credibility and alignment with market expectations.

The framework sits alongside Emirates NBD’s existing sustainable finance and sustainability-linked financing structures.

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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.”

UAE banks expand climate finance ambitions

The framework also connects Emirates NBD’s financing strategy with the UAE’s broader climate and economic agenda.

The UAE Banking Federation has set an industry ambition to mobilise AED 1 trillion in sustainable finance by 2030. Emirates NBD’s $30 billion commitment forms part of that wider effort.

For banks, the challenge is extending climate finance beyond assets that already qualify as green. Heavy industry, transport, buildings and energy infrastructure require significant capital to reduce emissions, even when complete decarbonisation is not immediately possible.

Dedicated transition finance frameworks can help address that gap. They also introduce governance requirements around which activities qualify and how progress is assessed.

For corporate borrowers, that can create greater certainty when structuring capital expenditure around emissions reduction. For investors and lenders, clearer eligibility criteria can improve comparability while reducing the risk of loosely defined transition claims.

The approach is particularly relevant across the Gulf, where governments are pursuing economic diversification while retaining major industrial and energy sectors.

As transition finance standards develop globally, the credibility of these frameworks will depend on measurable emissions reductions and transparent corporate transition plans. Emirates NBD’s framework gives the UAE market another financing mechanism for directing capital towards that challenge.