Carbon Intensity of Banks’ Loan Portfolio : A Good Basis for Comparison in Case of LowIncome Countries?

In recent years, more and credit institutions have been publishing the financed carbon footprint of their loan portfolio, enabling comparisons across institutions, for which investors supervisors tend to use intensity portfolios expressed as a proportion footprint-to-total volumes. this article, it is argued that such are unfair low-income countries with low price levels, they show same activity being “carbonintensive” in country than high-income country. The magnitude distortions can be significant, amounting much 3 7-fold just within European Union itself. As differences resulting from levels do not actually represent individual countries’ real economy also an “own choice” these (but rather consequence Balassa-Samuelson effect), comparison different banks’ should conducted using purchasing power parity adjustments – if necessarily investors, at least practice financial supervisory authorities.