New lending model fuels Dh1 trillion goal for UAE industrial decarbonisation

Emirates NBD launched the UAE’s first dedicated Transition Finance Framework on Monday, 17 August, providing a structured lending pathway for companies in high-emitting sectors to fund decarbonisation projects. The new framework targets industries that are traditionally difficult to transition, including manufacturing, mining, power, real estate, and transportation. Targeting hard-to-abate sectors The framework establishes a specific methodology to identify and label activities that reduce carbon footprints in capital-intensive sectors. Unlike standard "green" financing, which requires immediate low-carbon outcomes, this transition model supports companies that are currently carbon-intensive but have credible plans to adopt energy-efficient technologies and low-carbon business models. Emirates NBD developed the criteria based on the 2025 guidelines from the International Capital Market Association (ICMA) and the Loan Market Association (LMA). DNV Assurance provided a second-party opinion to verify that the framework aligns with international market standards. Support for Dh1 trillion national target The bank announced the framework to help meet its own target of providing $30 billion (Dh110 billion) in sustainable finance by 2030. This individual goal contributes to the UAE Banking Federation’s broader industry ambition to mobilise Dh1 trillion in sustainable finance by the end of the decade. The timing of the launch follows increased regulatory pressure and investor demand…