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

Answer: (a) The Asian Development Bank (ADB)

The ADB launched the Nature Solutions Finance Hub for Asia and the Pacific at COP28 (December 2023) to draw private investment into nature-based solutions.

The idea

Nature-based solutions use ecosystems to solve human problems: mangroves against storm surge, wetlands against floods, forests for water supply. They get very little private money because the returns are slow. A finance hub uses public money to reduce the risk so that private investors come in.

Nature project has slow, uncertain returns → Private investors stay away → The bank gives guarantees and first-loss money → Risk falls → Private capital enters

Why the others are wrong

(b) The AIIB lends mainly for infrastructure such as roads, power and ports.

(c) The NDB is the BRICS bank.

(d) The IBRD is the World Bank’s lending arm.

The trap

“Asia and the Pacific” is the ADB’s exact regional phrase.

Also know

The hub was launched at COP28 in Dubai (December 2023) and aims to draw at least 2 billion dollars. Know the four banks: ADB (1966, Manila; Japan and the USA are the largest shareholders), AIIB (2016, Beijing; India is the second-largest shareholder), NDB (2015, Shanghai; the BRICS bank), IBRD (1944, Washington; part of the World Bank Group).