How to Monitor and Reduce Emissions Using Our Carbon Intensity Toolkit

What Is carbon intensity? 

In today’s world, understanding and managing carbon emissions is no longer optional for businesses. Carbon intensity is a key metric for measuring the environmental impact of energy use. It is typically expressed in grams of CO2 equivalents per kilowatt-hour (gCO2eq/kWh) or in kilograms of CO2 equivalents per megawatt-hour (kgCO2eq/MWh). By focusing on carbon intensity, companies can not only monitor and reduce their emissions but also position themselves as environmentally responsible organisations. 

Understanding carbon intensity 

There is one key difference in carbon intensity: production-based and consumption-based. 

Production-based carbon intensity:

This represents the carbon emissions associated with the power generated within a specific country or bidding zone. It excludes the impact of imported and exported electricity, focusing only on the emissions from the power sources used within that zone.  

Consumption-cased carbon intensity:

This represents the carbon emissions associated with the electricity consumed within a specific country or bidding zone. This metric accounts for the impact of imported and exported power, reflecting the emissions from the energy sources used to meet local demand, regardless of where the electricity was generated. 

The flow-tracing methodology to measure carbon intensity 

Flow tracing is a method used to track the origin and distribution of electricity across a grid to determine the carbon emissions associated with its consumption. It provides a detailed understanding of how electricity flows from generation sources to end consumers, enabling the assignment of specific carbon intensities to electricity consumed at different locations. Flow tracing distinguishes between two coupling mechanisms for zones: direct and aggregated coupling. 

We have chosen to use aggregated coupling because it better reflects the electricity market. It assumes that a zone’s electricity consumption is primarily met by its own local production. If a zone is a net exporter, it produces more electricity than it consumes, covering its domestic demand entirely and exporting the surplus. Conversely, a net importer consumes its entire local production and relies on imports to meet additional demand. Although zones may simultaneously import and export electricity, this method simplifies the analysis by treating a zone as either a source or a sink. 

Flow tracing with aggregated coupling is then used to determine how exports are distributed among importing countries, providing insights into the carbon intensity of cross-border electricity flows. 

The figure below shows a simplified network. The black dots indicate the net position of the zones. France and the Netherlands are net exporters (sources), adding power to the network. The other countries are net importers (sinks) and take power from the network. In the case of direct flows via direct connections, it is clear how and why power flows from one zone to another. However, there is no direct connection from Austria, the sink, to any source. Where does it get its power from? Through indirect flows! Power from France and the Netherlands goes through Germany, which takes a large part of it and forwards the rest to Austria. 

Carbon intensity vs. Total emissions 

While total emissions quantify the total volume of CO2 released, carbon intensity measures efficiency. For example, two companies might emit the same total CO2, but the one producing more energy per unit of carbon emitted will have a lower carbon intensity, indicating better energy efficiency. 

Why is carbon intensity important? 

Businesses should track carbon intensity for several reasons: 

• Climate goals: Understanding carbon intensity helps organisations align with global climate targets and internal sustainability objectives. 

• Regulatory incentives: Governments and regulatory bodies often incentivise businesses to lower their carbon intensity through tax benefits or subsidies. 

• Energy efficiency: Tracking carbon intensity helps businesses identify inefficiencies and optimise energy use. 

• Reputation: Companies demonstrating proactive carbon management can enhance their environmental reputation among customers, investors, and stakeholders. 

What are the benefits of tracking carbon intensity? 

Monitoring carbon intensity over time allows businesses to: 

• Identify trends and patterns in energy efficiency. 

• Set achievable goals for reducing emissions. 

• Benchmark performance against industry standards. 

• Make data-driven decisions to optimise operations. 

Practical ways to monitor carbon intensity in real time 

The ability to monitor carbon intensity in real time is vital for businesses looking to manage their emissions effectively. Our Carbon Intensity Toolkit provides the tools necessary to track and analyse carbon data with precision. 

Real-Time Monitoring with the Carbon Intensity Toolkit 

Our Carbon Intensity Toolkit offers: 

• Live carbon tracking: View real-time carbon intensity data to understand current emissions. 

• 10-day forecasts: Access carbon intensity predictions for the next ten days, enabling smarter energy use planning. 

• Integration options: Easily incorporate carbon data into existing systems for seamless analysis and action. 

Carbon intensity toolkit enables smarter decision-making

Real-time monitoring enables businesses to: 

• Adjust energy-intensive processes to align with low-carbon periods. 

• Reduce peak energy costs by avoiding high-carbon-intensity times. 

• Enhance overall energy efficiency by making informed operational adjustments. 

Benefits of using the carbon intensity toolkit 

Our Carbon Intensity Toolkit goes beyond monitoring; it empowers businesses to take meaningful action toward sustainability. 

Improving environmental reputation 

Companies using the carbon intensity toolkit can: 

• Demonstrate commitment to sustainability. 

• Attract eco-conscious customers and investors. 

• Stand out in competitive markets by aligning with environmental values. 

Long-term sustainability planning 

By leveraging real-time carbon data, businesses can: 

• Set realistic emission reduction goals. 

• Monitor progress toward those goals effectively. 

• Develop strategies for long-term energy efficiency and carbon reduction. 

Broader environmental impact 

The toolkit enables businesses to integrate carbon intensity data into their products or services, creating a ripple effect of environmental awareness across their value chains. 

Tracking and reducing carbon intensity 

In a world increasingly focused on sustainability, monitoring and reducing carbon intensity is essential for businesses. By utilising tools like our Carbon Intensity Toolkit, companies can: 

• Gain real-time insights into their emissions. 

• Optimise energy use for lower costs and environmental impact. 

• Align with climate goals and regulatory requirements. 

Proactively managing carbon intensity isn’t just good for the planet, it’s also a smart business decision. Our Carbon Intensity Toolkit is a step toward a more sustainable future.