Read the passage and mark the letter A, B, C, or D on your answer sheet to indicate the best answer to each of the following questions from...
Đề bài
Read the passage and mark the letter A, B, C, or D on your answer sheet to indicate the best answer to each of the following questions from 12 to 19.
An innovative financial plan designed to liberate vast sums of private capital for climate finance is being championed by the Inter-American Development Bank (IADB). The proposals, developed by IADB special adviser Avinash Persaud, aim to use public money to de-risk renewable energy investments in the developing world. Persaud contends the plan could drive tens of billions in new green investments within years and eventually provide the bulk of the $1.3 trillion in annual climate finance required by 2035, calling the mechanism “an engine for green growth” and a potential “transformation.”
The plan will be detailed at a UN meeting in Bonn, initiating negotiations for the pivotal COP30 climate summit in Brazil. The discussions proceed against a tense global backdrop. Research from Oil Change International confirms that wealthy nations—including the US, Canada, and Australia—are simultaneously planning prolific new oil and gas expansion, in direct contravention of their climate pledges. That duplicity makes the exigent issue of securing finance for developing nations, who need it to curtail their own emissions and contend with extreme weather impacts, even more critical.
The IADB-pioneered plan hinges on a pragmatic mechanism. It would see taxpayer-funded development banks purchase existing, high-performing green loans from private sector lenders in developing nations. Currently, major institutional investors, such as pension funds, are often precluded from holding these low-risk assets. The problem is not the loan quality, but the low sovereign credit ratings of the countries where they are based, which violate the investors’ strict fiduciary rules. When a development bank (which holds an impeccable credit rating) buys and repackages these loans, the assets are deemed secure and satisfy the criteria for private investment.
A pivotal component of the concept is the creation of a “virtuous circle.” The original private lenders, who possess proven expertise in renewable projects, must agree to re-deploy the capital they receive from the sale into new green energy schemes, thereby funding the next wave of development. The IADB is already working to launch the program, with an initial $500m–$1bn loan portfolio expected before COP30. Experts like Mattia Romani of Systemiq have lauded the initiative as “both pragmatic and innovative” and one of the few “realistic tools” to mobilize the colossal sums needed by leveraging local commercial banks.
Question 12: The word prolific in paragraph 2 is closest in meaning to ______.
A. extensive B. controversial C. strategic D. new