Transition loans

A transition loan is a climate-focused loan developed to finance projects that contribute to reducing emissions and promote emission-reducing technology in a specific and measurable way. Just as with green loans, it is important that other environmental and social factors are taken into account.

The loan can finance investments with both short-term and long-term effects, and the investments should use the best available technology. Assessments are made to avoid unacceptable extension of the lifetime of emissions-intensive assets (so-called lock-in effect).

Transition loans are primarily aimed at companies in high-emission sectors. We prioritise companies that have set themselves net-zero targets, normally with associated interim goals, and have specific, credible strategies for how to reach these targets. Transition loans can be given to businesses that are necessary in a future low-emission society, but also to businesses that have significant societal significance in the short term, but which in the long term will probably be phased out (such as certain businesses in the petroleum sector). With a transition loan from DNB, we support your business’s journey towards a more sustainable future.

With a transition loan from DNB, your business can finance investments and projects in sectors such as maritime transport, heavy industry, heavy transport, aviation and fisheries. This loan can provide better conditions than ordinary corporate loans.

The company’s investment should:

• Be part of the company’s overall sustainability strategy and transition plan
• Contribute to achieving the company’s specific goals on significant emission reduction
• Be a relevant part of the company’s core business
• Use the best available technology (where possible)
• Not cause an unacceptable lock-in effect

This ensures that the financing contributes to the transition in a credible way.

You can read more about the criteria for obtaining a transition loan in DNB’s transition loan framework here.