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Carbon intensity & Scope 1-2-3 emissions

Business Model & Unit Economics · Unit metrics

What it is

Emissions per unit of output, split by scope - direct emissions from owned operations, indirect from purchased energy, and everything else across the value chain. Scope 3 is usually the largest and the hardest to measure

It is moving from voluntary disclosure to a priced liability under carbon markets and border adjustments

Impact on industries

  • Under CBAM and domestic carbon trading it becomes a direct cost, so emission intensity now sits in the cost structure rather than the sustainability report
  • Low-intensity producers gain a measurable commercial advantage as carbon is priced, turning past efficiency investment into current margin
  • Scope 3 depends on supplier data that is often unavailable or unverified, so reported figures carry wide error
  • Intensity can fall while absolute emissions rise if output grows faster, so the two measures answer different questions