California's Low Carbon Fuel Standard carbon credit transfer values slid in the week ended March 19, according to Air Resources Board data.
The volume-weighted average price in the most recent week of data was $89.02/mt, down from $93.86/mt the previous week. The lowest transfer was at $80.91/mt while the highest was $98/mt.
There were 108,204 mt transferred with a total value of $9,632,144.
These transfers are not necessarily representative of the current market, but are the credits transferred in the last week. If two parties traded last week for credits in the third quarter of 2017, that transaction will appear when the credits transfer in the third quarter, not in last week's report.
S&P Global Platts assessed LCFS carbon credits at $79/mt Tuesday.
LCFS credits are generated as obligated parties produce fuels below the annual carbon intensity requirement. For example, in 2017 the gasoline standard is 95.02 CI. If a party produces gasoline that is 90 CI, it generates credits that can be sold in the market to parties who generated a deficit, or gasoline above 95.02 CI.
Each credit represents 1 mt of carbon emissions.
The LCFS aims to reduce the carbon intensity of transportation fuels by 10% of 2010 levels by 2020. The initial years of the program required a 1% reduction, while 2017 requires a 3.5% cut and the targets will accelerate in coming years.
