2020 is proving to be another record-breaking year in the California Low Carbon Fuel Standard (CA LCFS) market. Credit pricing remained strong throughout Q4 2019 and January 2020 with spot pricing sustaining levels over ~$200 per credit. Despite the cost containment provisions the California Air Resources Board (CARB) implemented in late 2019, the market recently has transacted above the implied ~$213 cap. The enclosed update provides highlights on news impacting the market, a recent price trend overview, and a closer look at the Q3 2019 credit and deficit report released by CARB at the end of January.

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.

On October 2, 2019, Steven Eisenberg, SRECTrade’s Chief Executive Officer, will be presenting during the “Fuel Management & Low Carbon Transportation Technologies” session at the Charge Expo Symposium in San Diego, CA. The session will take place from 10 AM – 12 PM.

Steven will speak about the benefits of the California Low Carbon Fuel Standard (CA LCFS), a market based program that encourages the adoption of low carbon intensive fuels and vehicles. SRECTrade works with participants across the LCFS market, providing credit portfolio management and transaction services to clean fuel fleet operators and other credit generators.

From September 26th – 27th SRECTrade will be proudly sponsoring the Zero Emission Bus (ZEB) Conference in San Francisco, CA. The conference will center around electric bus knowledge and industry collaboration, as more cities, states and provinces turn toward zero-emission mobility as a key strategy in mitigating climate change. Join us this September in discussing real strategies for the world’s transit innovators and learn more about how to prepare for electrification at scale.

The Conference is hosted by the Center for Transportation and the Environment (CTE). Learn more about the event and register for it here.

SRECTrade works with participants across the California Low Carbon Fuel Standard (CA LCFS) market, providing credit portfolio management and transaction services to clean fuel fleet operators and other credit generators. For more information on our services contact us at cleanfuels@srectrade.com.

As per data released by the California Air Resources Board (CARB) on July 9th, the California Low Carbon Fuel Standard (LCFS) market saw a slight uptick in pricing this past week, increasing to a weighted average weekly price of $191.67. This is up $1.06 from last week’s average price of $190.61. The market saw a slight decrease in volume this past week with 319,948 credits transferred, down from last week’s volume of 401,628, but up from the last twelve month (LTM) weekly average of 243,170. Credit transfers continue to be high likely due to Q1 credit issuance and associated transfers.

Please click on the pricing chart below for a visualization of LTM trends.

As per data released by the California Air Resources Board (CARB) on July 2nd, the California Low Carbon Fuel Standard (LCFS) market saw a slight drop in pricing this past week, decreasing to a weighted average weekly price of $190.61. This is down $1.26 from last week’s average price of $191.87 and the first week we have seen a price decrease since early May. The market saw a significant increase in volume this past week with 401,628 credits transferred, up from last week’s volume of 39,827 and the last twelve month (LTM) weekly average of 239,704. This is likely due to Q1 credit issuance and associated transfers.

Please click on the pricing chart below for a visualization of LTM trends.

As per data released by the California Air Resources Board (CARB) on June 25th, the Low Carbon Fuel Standard (LCFS) market continued its upward price trend this past week, increasing to a weighted average weekly price of $191.87. This is up $2.75 from last week’s average price of $189.12 and the fourth straight week we have seen an uptick in LCFS pricing. This is also the first time since early April that the market saw pricing above $190 per credit. The market, however, did see a significant decrease in volume this past week with 39,827 credits transferred, down from last week’s volume of 86,403 and the last twelve month (LTM) weekly average of 237,742.

Please click on the pricing chart below for a visualization of LTM trends.