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British Columbia LCFS credits pass C$500

  • Market: Emissions
  • 04/12/23

Average British Columbia low-carbon fuel standard (LCFS) credit transfer prices rose to a new high in November, according to the latest provincial data.

The more than 151,000 metric tonnes of credits moved across 17 transfers struck since May averaged C$501.99/t ($370.86/t), according to the Ministry of Energy, Mines and Low Carbon Innovation. Another two transfers totaling about 22,000 t of credits traded between six months to a year prior averaged C$460.75/t. The overall average C$496.83/t was the highest since the province began reporting trade data collected since November 2015.

LCFS programs require yearly reductions to transportation fuel carbon intensity. Conventional, higher-carbon fuels that exceed the annual limits incur deficits that suppliers must offset with credits generated from the distribution of approved, lower-carbon alternatives.

British Columbia administers the deepest reduction targets among North American programs, at 30pc by 2030. The province continues to operate its program on top of a new federal Clean Fuels Regulation that began enforcement in July. Fuel supplied to British Columbia can generate deficits and credits under both programs. The program will add carbon-reduction requirements to aviation fuel in the province beginning in 2026.


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