The first quarter of 2020 showcased both record high pricing and a COVID-19 slump in the California Low Carbon Fuel Standard (CA LCFS) market. Credit pricing remained strong throughout January and February 2020, with spot pricing sustaining levels over ~$200 per credit and some transactions executed above the previously implied ~$213 cap. In mid-March, LCFS credit pricing dropped nearly 20% from ~$210 to approximately $170 per credit due to the impact of COVID-19. The enclosed update provides highlights on news impacting the market, a recent price trend overview, and a closer look at the Q4 2019 credit and deficit report released by CARB at the end of April.
SRECTrade offers LCFS credit management and brokerage services to electric vehicle (EV) fleet operators, OEMs, EV charging station owners, and other clean fuel asset owners. We help our clients navigate the entire LCFS process including asset registration, ongoing reporting requirements, transacting, settlement, and remittance of funds. Our domain expertise in environmental commodity markets allows us to provide our clients with industry leading regulatory and market knowledge. Please reach out to cleanfuels@srectrade.com for more information.
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