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UPSC Prelims 2025GS1Environment & EcologyNature Solutions Finance Hub

Q15. Which one of the following launched the 'Nature Solutions Finance Hub for Asia and the Pacific'?

A. The Asian Development Bank (ADB)✓ Correct
B. The Asian Infrastructure Investment Bank (AIIB)
C. The New Development Bank (NDB)
D. The International Bank for Reconstruction and Development (IBRD)

Detailed Solution

✓ Correct Answer: Option A

The 'Nature Solutions Finance Hub for Asia and the Pacific' was launched by the Asian Development Bank (ADB) at COP28. This initiative aims to mobilize significant investment, targeting at least $2 billion, into programs that integrate nature-based solutions.

The hub focuses on attracting capital from financial markets and private sources, utilizing various financing mechanisms such as guarantees, impact-linked payments, and blended finance to de-risk nature-based projects. Its goal is to address climate change and biodiversity loss by promoting sustainable investments in the Asia and Pacific region.

The role of international financial institutions in climate finance and sustainable development is a recurring theme in UPSC examinations.

Current Affairs Link

The initiative was launched at COP-28.

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