Emirates NBD has launched the UAE’s first Transition Finance Framework, a formal structure for funding companies in high-emitting industries on credible paths to decarbonisation. It is the latest addition to the bank’s sustainable finance platform, backing the UAE banking sector’s AED 1 trillion sustainable finance ambition.
The framework is aimed at corporate and institutional clients whose activities may not yet qualify as “green” but are taking measurable steps to cut emissions, improve efficiency or adopt cleaner technologies. It covers the sectors where decarbonisation is hardest: manufacturing, mining, power and energy, real estate, transportation and storage, agriculture and information technology.
The framework sets a consistent methodology for identifying, assessing and labelling activities that qualify for transition financing. It was developed with reference to 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.
“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.”
Vijay Bains, Chief Sustainability Officer and Group Head of ESG at Emirates NBD
Transition finance, not green finance
Green finance funds activities that are already green. Transition finance funds the journey towards it — companies that are moving, with a plan, but not there yet. For hard-to-abate industries, that distinction is the difference between getting capital and not.
Emirates NBD supports the UAE Banking Federation’s ambition to mobilise AED 1 trillion in sustainable finance by 2030, and has set its own target of USD 30 billion by 2030. The framework expands a platform that already includes the bank’s Sustainable Finance and Sustainability-Linked Loan Financing Bond Frameworks, and follows its AED 1 billion fintech and AI partnership with the Dubai Future District Fund. The UAE’s first Green Licence scheme, unveiled earlier this year, shows the direction of travel regulators and lenders are pushing.
What the sustainable finance push means for UAE businesses
For companies in the sectors the framework covers, it offers clearer guidance on which activities qualify: emissions reduction, energy efficiency, cleaner technologies and lower-carbon business models. Borrowers get a defined route to meet expectations from investors, lenders and regulators — and a bank prepared to fund the transition rather than wait for it to finish.
Gulf News first reported the launch. The framework itself is published on Emirates NBD’s sustainability page.
What is the difference between green finance and transition finance?
Green finance funds activities that are already green, such as renewable energy or certified green buildings. Transition finance funds companies that are not there yet but are taking measurable steps to cut emissions, improve efficiency or adopt cleaner technologies — the journey towards green, rather than the destination.
Will the framework fund fossil fuel and energy companies?
It can, but only on a credible path. The framework covers hard-to-abate sectors including power and energy, mining and transportation, and applies a consistent methodology to assess whether an activity qualifies. Companies need to show measurable steps towards lower-carbon operations, not just an intention to get there.
Why is this the UAE’s first transition finance framework?
Most UAE banks run green or sustainability-linked finance frameworks, but a dedicated structure for transition finance — lending to high emitters on credible decarbonisation paths — is new to the market. Emirates NBD built its version on recent international guidance, including the ICMA Climate Transition Finance Handbook and the Loan Market Association’s 2025 transition loan guide.
