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

(a) The Asian Development Bank (ADB)
(b) The Asian Infrastructure Investment Bank (AIIB)
(c) The New Development Bank (NDB)
(d) The International Bank for Reconstruction and Development (IBRD)

✅ Correct Answer: (a)

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🔍 Classroom Explanation:

The Asian Development Bank launched the Nature Solutions Finance Hub for Asia and the Pacific during COP28.

The core objective of this hub is to mobilise private and public finance for nature-based solutions (NbS) across the Asia-Pacific region.

Key features of the initiative:

• Targets at least USD 2 billion in investments for projects integrating nature-based solutions
• Strong focus on capital markets and private sector participation
• Uses de-risking financial instruments, including:
  • Guarantees
  • Impact-linked payments
  • Blended finance mechanisms
• Aims to mobilise around USD 1 billion in concessional and risk-mitigation funding from global development partners

This initiative aligns with ADB’s broader strategy of integrating climate action, biodiversity conservation, and sustainable finance.

Hence, option (a) is correct.

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🧠 Curiosity Raiser:
Why are nature-based solutions increasingly preferred over purely grey infrastructure for climate resilience in developing economies?

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📚 Enrich Notes (Prelims Edge):

• Nature-based solutions include mangroves, wetlands, urban green spaces, and forest restoration
• NbS offer co-benefits: climate mitigation, adaptation, biodiversity protection, and livelihoods
• COP28 saw a strong push to mainstream NbS into global climate finance
• ADB increasingly acts as a risk-absorber to crowd-in private capital

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🕊️ IAS Monk Whisper:
“When finance learns to trust nature, resilience becomes profitable.”