# Real-Time Carbon Accounting Method for the European Electricity Markets

## TL;DR

This paper introduces a real-time, flow tracing-based carbon accounting method for European electricity markets, providing more accurate and transparent emission data by tracking power flows from producers to consumers.

## Contribution

It presents a novel real-time consumption-based carbon accounting approach using flow tracing, improving transparency over traditional input-output models.

## Key findings

- Significant differences between production and consumption intensities across Europe.
- Cross-border electricity flows are crucial for accurate carbon emission accounting.
- The method reveals detailed hourly trade structures in 2017 European electricity markets.

## Abstract

Electricity accounts for 25% of global greenhouse gas emissions. Reducing emissions related to electricity consumption requires accurate measurements readily available to consumers, regulators and investors. In this case study, we propose a new real-time consumption-based accounting approach based on flow tracing. This method traces power flows from producer to consumer thereby representing the underlying physics of the electricity system, in contrast to the traditional input-output models of carbon accounting. With this method we explore the hourly structure of electricity trade across Europe in 2017, and find substantial differences between production and consumption intensities. This emphasizes the importance of considering cross-border flows for increased transparency regarding carbon emission accounting of electricity.