DenizBank publishes a financing framework for high-emission sectors, including steel and iron

DenizBank has published its Transition Finance Framework, a roadmap for financing decarbonization investments in high-emission sectors, including the iron and steel industry. The framework was developed in cooperation with its main shareholder, Emirates NBD, as part of the bank’s efforts to expand sustainable financing and support the transition of emissions-intensive sectors to a low-carbon economy.

Published as a standalone guidance document for the first time in Türkiye, the framework provides a systematic methodology for identifying, assessing and classifying activities that contribute to decarbonization in high-emission sectors.

Iron and steel among the sectors at the core of the framework

The sectors targeted for support under the Transition Finance Framework include iron and steel, cement, mining, manufacturing, real estate, transportation and agriculture. The framework aims to support companies operating in carbon-intensive and hard-to-abate sectors in decarbonizing in line with transition pathways aligned with the goals of the Paris Agreement.

Systematic approach to financing

DenizBank General Manager Recep Baştug said the transition to a low-carbon economy has become a key factor in countries’ growth models and competitiveness. He noted that the need for transformation has become increasingly critical for export-oriented sectors, particularly with the start of the financial obligations under the European Union’s Carbon Border Adjustment Mechanism.

Baştug said the Transition Finance Framework provides an approach that enables companies operating in sectors where green transformation is particularly challenging to finance their own concrete transition targets.

International standards taken into consideration

The Transition Finance Framework was prepared with reference to the International Capital Market Association’s (ICMA) Climate Transition Finance Handbook and Climate Transition Bond Guidelines, as well as international guidance published by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA) and Loan Syndications and Trading Association (LSTA).

The framework’s alignment with international standards was further supported by a Second Party Opinion provided by independent external reviewer DNV.