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The LCFS Credit Clearance Market: What Might Happen?

Nov 8, 2018

With annual Low Carbon Fuel Standard (LCFS) deficits exceeding credits this year and that trend projected to continue for at least a few years, the credit bank that was built through 2016 will need to be drawn on for compliance. The majority of the credit bank is held by a few Entities, and if these Entities endeavor to maintain their respective banks, the availability of LCFS credits will tighten. If insufficient credits are made available in the market, Entities that need credits to comply may end with a net deficit position in their annual compliance report, making them subject to the Credit Clearance Market (CCM), often referred to as “the price cap.” Stillwater’s team of LCFS experts has written a white paper to explain how this feature of the LCFS works and how the CCM may play out in the coming years.

Click here to download your copy of our CCM Analysis.

Learn more about Stillwater’s Credit Price Outlooks