Question 79 from UPSC CSE 2025 - Current Affairs (Environm ent & Ecology)

Question

Which one of the following launched the 'Nature Solutions Finance Hub for Asia and the Pacific'?

IASCODEX · Accepted Answer

Correct Option: A. The Asian Development Bank (ADB)

Strategy: Focus on the initiative's scope—'Nature Solutions Finance Hub' for the Asia-Pacific region points towards an institution with a strong regional development focus. The Asian Development Bank (ADB) is known for Asia-Pacific targeted financial and environmental initiatives. Options like IBRD, AIIB, and NDB do not have a primary focus on nature-based financial solutions specific to this region or have not made news with such an initiative. Direct factual knowledge confirms ADB as correct.

Key Info: The Asian Development Bank (ADB) is a multilateral development bank established in 1966 to promote economic and social progress in the Asia-Pacific region. Headquartered in Manila, Philippines, it comprises 68 members. In December 2023, at COP28, ADB launched the 'Nature Solutions Finance Hub for Asia and the Pacific,' an initiative designed to channel at least $2 billion into nature-based solutions across member countries. The hub seeks to mobilize private capital for projects enhancing biodiversity, climate adaptation, sustainable land management, and ecosystem restoration. It uses instruments like guarantees, impact-linked payments, and blended finance (combining public and private investment) to reduce investor risk. The ADB has a prominent track record in supporting climate finance and sustainable development in the region. The AIIB is primarily focused on infrastructure; NDB serves BRICS nations for sustainable development and infrastructure; IBRD (part of the World Bank Group) works globally but has not spearheaded this nature-based finance hub for Asia-Pacific.

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Option B: The Asian Infrastructure Investment Bank (AIIB)

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Option C: The New Development Bank (NDB)

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Option D: The International Bank for Reconstruction and Development (IBRD)