What is Carbon Intensity?
The amount of carbon dioxide emitted per unit of energy or economic output. Carbon intensity is commonly expressed as grams of CO₂ per kWh of electricity or kg CO₂ per pound of revenue.
Why it matters
Carbon intensity metrics allow businesses to track decarbonisation progress even as they grow. A company can increase revenue while reducing carbon intensity, demonstrating that growth and decarbonisation are compatible.
Example
A software company tracks its carbon intensity as kg CO₂e per £1,000 revenue. Over two years, revenue grows 40% while total emissions stay flat, reducing intensity from 12.5 to 8.9 kg CO₂e per £1,000, a 29% improvement.
Related terms
Grid Decarbonisation
The process of reducing the carbon intensity of electricity grids through increased renewable generation and reduced fossil fuel use. UK grid carbon intensity has fallen significantly in recent years.
Emission Factors
Coefficients that quantify the greenhouse gas emissions produced per unit of activity. Examples include kg CO₂e per kWh of electricity, per litre of fuel, or per pound spent. DESNZ publishes UK-specific emission factors annually.
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