UOB launches green financing framework for carbon-intensive industries
The bank aims to help firms pivot their business towards a more climate-friendly model.
UOB has announced the launch of a set of new solutions for customers in carbon-intensive, fossil fuel-based and hard-to-abate sectors looking to decarbonise.
The Bank’s solutions aim to help finance carbon-intensive companies as they pivot their business models towards more climate-friendly activities including projects, technological improvements or equipment that contribute to their overall transition plans and emissions reductions.
The solutions will be under UOB’s new Transition Finance Framework that supports clients on their energy transition journeys. Clients covered in such industries include oil, gas and chemicals; logistics and transportation (marine, land and aviation); fossil fuel-based power generation; and metals and mining.
The Transition Finance Framework is aligned with internationally recognised best practices. The transition finance solutions are designed to assist carbon-intensive companies in their
energy transition journeys in four main categories of business activities which are operational efficiency, business pivot, climate change mitigation, and voluntary carbon credits.
The Framework has in place strict governance to eliminate greenwashing. Companies must align their climate transition plans to either the Paris Agreement or Nationally Determined Net Zero Targets, such as Singapore’s target of becoming net zero by or around mid-century, as well as Thailand’s 2065 and Indonesia’s 2060 net zero ambitions.
“More clients in carbon-intensive sectors are telling us that decarbonisation is now at the top of their agenda. Climate change is an existential issue for all of us. Businesses want to do their part and we want to be where they need us most. UOB is here to support, enable and empower them to take steps to a greener future,” Joseph Poh, Head of Oil, Gas & Chemicals at the Sector Solutions Group, at UOB said.