Intensity targets: fuel efficiency is a half-strength lever
Four Class I railroads carry emissions-intensity targets measured per gross ton-mile. Fuel efficiency and emissions intensity look like twins over 2019–2026E — 9.9% versus 9.7% cumulative improvement, an r of 0.95 on levels. Year over year, the relationship falls apart. The regression slope says a 1% fuel-efficiency gain returns only about 0.47% of intensity reduction, because Scope 2 sits in the intensity numerator and never appears in a fuel number, and biofuel cuts reported emissions while acting as a headwind to pure efficiency. A savings case built on gallons travels only half the distance toward the target the customer is actually measured on.
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