UOB has launched a new set of solutions under its new Transition Finance Framework. The solutions seek to help the bank’s customers in carbon-intensive, fossil fuel-based and hard-to-abate sectors looking to decarbonise.
The bank’s solutions will finance carbon-intensive companies as they pivot their business models towards more climate-friendly activities including projects, technological improvement or equipment that contribute to their overall transition plans and emissions reductions.
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.
These transition finance solutions are said to be tailor-made for these sectors that are unable to access green financing solutions, which are not readily available for companies in carbon-intensive sectors.
“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,” says Joseph Poh, head of oil, gas & chemicals at the sector solutions group, UOB.
As at 4.20pm, shares in UOB are trading 1 cent lower or 0.04% down at $26.15.