Tracing Industrial Carbon: From GHG Scopes to Product-Level Emissions

What aluminium, steel, cement and ammonia reveal about direct emissions, electricity use and industrial carbon accounting

Energy & Carbon Economics
A practical guide to Scope 1, Scope 2 and Scope 3 through major industrial products, connecting organizational GHG accounting with product-level emissions and industrial energy use.
Author

Paing Hein Soe

Published

August 17, 2026

Industrial carbon is often reduced to a single number, such as tonnes of CO\(_2\) per tonne of steel, aluminium or cement. That number is useful, but it can hide an equally important question: where did those emissions actually occur?

Some emissions are released directly inside the plant. Others arise from the electricity used to run the process. Still others occur upstream or downstream in the value chain.

When I started comparing industrial products more closely, I found that Scope 1, Scope 2 and Scope 3 became much easier to understand once I followed the physical production process instead of starting with the accounting definitions alone.

A primary aluminium smelter, a conventional steelworks, a cement kiln and an ammonia plant can all be carbon-intensive, but for different reasons. This article follows those differences from the organization to the product, and then to the wider industrial and policy context.

NoteWhat this article helps you understand
  • what Scope 1, Scope 2 and Scope 3 actually describe;
  • how organizational emissions become product-level intensities such as tCO\(_2\)e/t;
  • why electricity use should be understood before interpreting Scope 2;
  • how aluminium, steel, cement and ammonia differ physically;
  • why both emissions intensity and production scale matter; and
  • why corporate, product and regulatory carbon boundaries are related but not identical.

I use Figure 1 as the map for the article. Read it from left to right: organization, product, then policy or trade.

Three connected views of industrial carbon: organization, product, and policy or trade
Figure 1: Three connected views of industrial carbon. The same physical emissions can be organized differently depending on the accounting question.

NotePart I: From the organization to the product

First locate emissions around the reporting organization. Then translate the relevant emissions into a product-level intensity.

1. The bigger picture: three accounting views

Before comparing industrial products, I find it useful to separate three questions.

View Main question Typical output
Organization Where do the reporting organization’s emissions occur? Scope 1, Scope 2, Scope 3
Product How much GHG is associated with one unit of product? tCO\(_2\)e/t product
Policy / trade Which emissions count under a particular legal mechanism? Regulatory emissions measure

These views are connected, but they are not interchangeable. A corporate GHG inventory organizes emissions around the reporting organization. A product calculation uses a defined product boundary. A regulatory system can define another boundary for its own legal purpose.

That distinction becomes easier to see once we follow emissions around an industrial plant.

2. What Scope 1, Scope 2 and Scope 3 actually tell us

The GHG Protocol Corporate Standard organizes a reporting organization’s emissions into three scopes (Greenhouse Gas Protocol 2004).

WarningScope 1

Direct emissions from owned or controlled sources.

Industrial examples include fuel combustion, process reactions and gases released during plant operation (Greenhouse Gas Protocol 2004).

NoteScope 2

Emissions from purchased or acquired energy.

This includes electricity, steam, heat and cooling consumed by the reporting organization (Greenhouse Gas Protocol 2015).

TipScope 3

Other indirect value-chain emissions.

Examples include purchased raw materials, third-party transport, downstream processing and end-of-life activities where relevant (Greenhouse Gas Protocol 2011a).

One rule is especially useful:

Scopes depend on whose inventory we are looking at.

If an aluminium smelter buys electricity from the grid, the CO\(_2\) is physically released at the power station. Those emissions can be Scope 1 for the utility operating the power station and Scope 2 for the aluminium company purchasing the electricity.

Figure 2 shows the three scopes around one industrial plant.

Scope 1, Scope 2 and Scope 3 around an industrial plant
Figure 2: Scope 1, Scope 2 and Scope 3 around an industrial plant. Scopes describe where emissions sit relative to the reporting organization.

For the rest of this article, I keep Scope 3 brief and concentrate mainly on Scope 1, electricity use and Scope 2, because those differences are particularly useful for understanding industrial processes.

3. Moving from the organization to the product

Scope 1, Scope 2 and Scope 3 are organizational accounting categories. Industrial analysis often needs another step: relating emissions to the quantity of material produced.

TipProduct emissions intensity

\[ \text{Emissions intensity} = \frac{\text{GHG emissions}}{\text{quantity of product}} \]

Typical units are tCO\(_2\)e per tonne of product.

For example, we might report:

\[ \mathrm{tCO_2e/t\ primary\ aluminium} \]

or:

\[ \mathrm{tCO_2e/t\ steel}. \]

The GHG Protocol distinguishes corporate value-chain accounting from product-level life-cycle accounting (Greenhouse Gas Protocol 2011b). So when I see an industrial carbon-intensity number, I first check four things:

Before comparing an intensity, ask:

  1. What exact product is being measured?
  2. Which production route is included?
  3. Which emissions are inside the calculation boundary?
  4. Which geography and year does the value represent?

Without that context, two numbers that look comparable may describe different systems.

4. Electricity first: why MWh per tonne matters

Before calculating electricity-related emissions, it helps to ask a physical engineering question:

How much electricity does producing one tonne actually require?

For a simple location-based illustration:

\[ \text{Electricity-related Scope 2 intensity} \approx \text{Electricity use} \times \text{electricity emission factor} \]

or, in units:

\[ \frac{\mathrm{tCO_2e}}{\mathrm{t\ product}} \approx \frac{\mathrm{MWh}}{\mathrm{t\ product}} \times \frac{\mathrm{tCO_2e}}{\mathrm{MWh}}. \]

The GHG Protocol location-based method uses grid-average emissions information for a defined geographic area. Its market-based method instead reflects qualifying contractual instruments and supplier-specific information where available (Greenhouse Gas Protocol 2015).

A primary aluminium example

The European Commission Joint Research Centre (JRC) used approximately 14.79 MWh of electricity per tonne of primary aluminium in its EU+EFTA modelling assumptions (Vidovic et al. 2023).

Keep the physical electricity requirement fixed and change only the illustrative electricity factor:

\[ 14.79\times0.10 \approx 1.48\ \mathrm{tCO_2e/t} \]

\[ 14.79\times0.50 \approx 7.40\ \mathrm{tCO_2e/t}. \]

The process still uses 14.79 MWh/t. What changes is the carbon intensity assigned to the electricity supplying that demand. The two emission factors above are separate scenarios, not values that are multiplied together.

Figure 3 shows the two alternatives visually.

Electricity requirement, electricity emission factor, and resulting electricity-related Scope 2 intensity
Figure 3: Electricity use comes before electricity-related Scope 2. The same electricity requirement can produce very different electricity-related emissions when the electricity emission factor changes.
NoteAverage grid factor and marginal factor are not the same

An average grid emission factor represents the average carbon intensity of electricity supplied across a defined grid or geographic area. That is the type of factor aligned with the location-based Scope 2 inventory method (Greenhouse Gas Protocol 2015).

A marginal emission factor answers a different question: which generating unit changes output when electricity demand changes, and what emissions change with it?

Factor Question it answers
Average What is the average carbon intensity of the electricity system?
Marginal What generation changes when electricity demand changes?

For this introductory article, the average-factor concept is the relevant starting point for ordinary Scope 2 inventory accounting.

The main message is therefore straightforward:

Electricity intensity tells us how much electricity a process requires. The electricity emission factor determines the emissions associated with supplying that electricity.


NotePart II: Comparing industrial processes

With the accounting framework in place, we can now compare how four industrial production systems create and use carbon differently.

5. Four industrial systems, four different emissions profiles

NotePrimary aluminium

Process: Hall-Héroult electrolysis.

Direct sources: carbon anodes, perfluorocarbons and fuels.

Electricity: about 14.79 MWh/t in the JRC EU+EFTA modelling input (Vidovic et al. 2023).

Representative JRC result: 1.87 tCO\(_2\)e/t direct + 2.26 tCO\(_2\)e/t indirect = 4.13 tCO\(_2\)e/t within the study’s 2019 boundary (Vidovic et al. 2023).

Boundary note: these JRC direct/indirect categories are product-level analytical categories, not simply corporate Scope 1 and Scope 2 labels.

TipSteel: route matters

A BF-BOF route relies heavily on coal and coke in reducing iron ore. An EAF instead uses electricity to melt metallic inputs, often including recycled steel.

Primary-route intensity: about 2.28 tCO\(_2\)/t under the JRC Worldsteel-aligned comparison (Vidovic et al. 2023).

EAF melting electricity: 2.07 GJ/t, equivalent to:

\[ 2.07/3.6\approx0.575\ \mathrm{MWh/t}. \]

(Vidovic et al. 2023)

The key physical point is that changing the production route changes where energy is used and where emissions arise.

WarningCement and clinker

A substantial share of cement-sector emissions comes from calcination, the chemical conversion of limestone during clinker production.

The JRC attributes roughly 60% of EU cement-industry emissions to limestone calcination, about 30% to thermal processing and about 10% to electricity consumption (Marmier 2023).

Grey clinker direct emissions: about 0.79 tCO\(_2\)/t clinker (Vidovic et al. 2023).

Cement electricity: about 113.5 kWh/t, or 0.1135 MWh/t (Marmier 2023).

Boundary note: clinker and cement are not the same product boundary.

NoteAmmonia

Conventional European ammonia production commonly produces hydrogen from natural gas before combining it with nitrogen in the Haber-Bosch process.

Direct emissions: about 1.91 tCO\(_2\)/t ammonia in the JRC EU estimate (Vidovic et al. 2023).

Electricity input: about 0.84 GJ/t, equivalent to:

\[ 0.84/3.6\approx0.233\ \mathrm{MWh/t}. \]

(Vidovic et al. 2023)

Here, the fossil feedstock used to produce hydrogen is a major part of the conventional production emissions profile.

Figure 4 puts the four examples together using source-specific values.

Representative industrial carbon intensity and electricity data for aluminium, steel, cement, and ammonia
Figure 4: Representative industrial evidence for primary aluminium, steel, cement or clinker, and ammonia. Values are source-specific and should be read with their stated process boundaries.

6. A compact comparison

The table below is deliberately compact. It is a reference summary, not a ranking of industries.

Table 1: Representative industrial emissions and electricity data. Values are source-specific and should not be interpreted as if every accounting boundary were identical.
Product / route Representative emissions data Electricity requirement Reference boundary
Primary aluminium 4.13 tCO\(_2\)e/t total in JRC EU modelling: 1.87 direct + 2.26 indirect (Vidovic et al. 2023) 14.79 MWh/t (Vidovic et al. 2023) JRC 2019 modelling boundary
Primary steel route 2.28 tCO\(_2\)/t (Vidovic et al. 2023) Route-dependent Worldsteel-aligned JRC comparison
EAF steel, melting step Route and metallic-input dependent ~0.575 MWh/t semi-finished steel (Vidovic et al. 2023) EAF melting subprocess
Grey clinker / cement Grey clinker direct: ~0.79 tCO\(_2\)/t clinker (Vidovic et al. 2023) Cement: ~0.1135 MWh/t (Marmier 2023) Clinker and cement use different boundaries
Ammonia EU direct: ~1.91 tCO\(_2\)/t ammonia (Vidovic et al. 2023) ~0.233 MWh/t (Vidovic et al. 2023) JRC EU process data

Do not compare every number as if the boundaries were identical. Product definition, process stage, year, geography and accounting method all matter.

7. From one tonne to European scale

Per-tonne intensity is only half of the picture. The wider significance of a sector also depends on how much material is produced.

Product Selected Europe-scale quantity Geography / year Source
Primary aluminium 0.9 Mt EU, 2023 (European Aluminium 2025)
Finished steel ~146 Mt/year EU, recent average (European Steel Association (EUROFER) 2026)
Cement 165 Mt EU27, 2020 (Marmier 2023)
Ammonia 15.4 Mt Europe, 2020 (Fertilizers Europe 2023)

These values provide scale, but they are not a harmonized same-year dataset. I therefore use them as context rather than as a direct statistical ranking.

TipIntensity and scale answer different questions

Intensity asks how much carbon or electricity is associated with one tonne.

Scale asks how many tonnes the industrial system produces.

Both are needed to understand system-wide significance.

Scaling electricity from one tonne to annual production

A transparent first-order estimate is:

\[ \text{Annual electricity requirement} \approx \text{annual production} \times \text{electricity intensity}. \]

For example, combining 0.9 Mt of EU primary aluminium production with the representative JRC intensity of 14.79 MWh/t gives:

\[ 0.9\ \mathrm{Mt}\times14.79\ \mathrm{MWh/t} \approx 13.3\ \mathrm{TWh}. \]

This is an order-of-magnitude scaling example, not an official EU electricity-consumption inventory. The production quantity and electricity-intensity parameter come from different sources and years (European Aluminium 2025; Vidovic et al. 2023).

NoteProduction and consumption are different geographical views

Electricity used to make EU-produced material is physically consumed in Europe. Electricity embodied in an imported material was consumed in the exporting country.

So multiplying EU production by a representative electricity intensity can approximate electricity associated with European production. Apparent European consumption should not automatically be multiplied by a European electricity factor.

8. Organization, product and policy: connected, not identical

We can now return to the three views from the beginning.

NoteOrganization

Question: Where do the reporting organization’s emissions occur?

Output: Scope 1, Scope 2 and Scope 3 (Greenhouse Gas Protocol 2004).

TipProduct

Question: How much GHG is associated with producing one unit of product under a defined boundary?

Output: values such as tCO\(_2\)e/t product (Greenhouse Gas Protocol 2011b).

WarningPolicy / trade

Question: Which emissions count under this legal mechanism?

Output: a regulatory emissions measure defined by the relevant rules.

The EU Emissions Trading System and the Carbon Border Adjustment Mechanism are examples of policy systems with legally defined emissions boundaries (European Commission 2026). Those boundaries can overlap with corporate or product accounting, but they are designed for a different purpose.

Not every carbon number is trying to answer the same question.

9. Closing perspective

Scope 1, Scope 2 and Scope 3 become easier to understand when they are connected to the physical production process.

For primary aluminium, electricity demand is a major part of the production system. For conventional steelmaking, carbon-based reduction is central. For cement, process chemistry itself releases substantial CO\(_2\). For conventional ammonia, the hydrogen-production feedstock is critical.

The scopes organize emissions from the perspective of a reporting organization. Product-level intensities connect those emissions to a tonne of material. Production volumes then show why per-tonne emissions are only one part of the industrial picture. Regulation can add yet another accounting boundary for its own purpose.

TipFour questions I keep in mind

Before comparing industrial carbon numbers, I ask:

  1. What exactly is being measured?
  2. Whose boundary is being used?
  3. Per tonne of what product?
  4. Under which production route and accounting method?

Those questions often matter just as much as the number itself.

Sources and further reading

European Aluminium. 2025. EU Free Trade Agenda. https://european-aluminium.eu/wp-content/uploads/2025/11/2025-11-14_EA_FTAs_position_paper.pdf.
European Commission. 2026. “Carbon Border Adjustment Mechanism.” https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en.
European Steel Association (EUROFER). 2026. “Statistics.” https://www.eurofer.eu/statistics.
Fertilizers Europe. 2023. Decarbonisation Roadmap 2050. https://www.fertilizerseurope.com/wp-content/uploads/2023/11/DEF_2023_Decarbonisation_Roadmap_digital.pdf.
Greenhouse Gas Protocol. 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). https://ghgprotocol.org/corporate-standard.
Greenhouse Gas Protocol. 2011a. Corporate Value Chain (Scope 3) Accounting and Reporting Standard. https://ghgprotocol.org/corporate-value-chain-scope-3-standard.
Greenhouse Gas Protocol. 2011b. Product Life Cycle Accounting and Reporting Standard. https://ghgprotocol.org/product-standard.
Greenhouse Gas Protocol. 2015. GHG Protocol Scope 2 Guidance: An Amendment to the GHG Protocol Corporate Standard. https://ghgprotocol.org/scope-2-guidance.
Marmier, A. 2023. Decarbonisation Options for the Cement Industry. Publications Office of the European Union. https://publications.jrc.ec.europa.eu/repository/handle/JRC131246.
Vidovic, D., A. Marmier, L. Zore, and J. Moya. 2023. Greenhouse Gas Emission Intensities of the Steel, Fertilisers, Aluminium and Cement Industries in the EU and Its Main Trading Partners. Publications Office of the European Union. https://doi.org/10.2760/359533.

A personal note

I prepared this article as part of my own effort to connect carbon-accounting terminology with the physical energy and industrial processes behind the numbers.

Scope 1, Scope 2 and Scope 3 can look like simple labels when we first encounter them. I find them much more useful when I ask what is physically happening inside the plant, where its electricity comes from, what sits outside the company boundary, and what changes when we move from a company inventory to a product or regulatory calculation.

Thanks for reading. I hope this gives you a clearer framework for interpreting industrial carbon numbers when you encounter them in company reports, technical studies or climate-policy discussions.