Singapore, 29 September 2022 –UOB has launched 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 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. 

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.

UOB’s transition finance solutions are tailor-made for these sectors that are unable to access its green financing solutions. Green financing is not readily available to companies in carbon-intensive industries and the lack of capital hinders their much-needed shift towards a cleaner future. 

Mr Joseph Poh, Head of Oil, Gas & Chemicals at the Sector Solutions Group, UOB, said, “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.” 

Helping companies transition in four main areas

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. These include: