Credit Market

Last updated on November 8, 2024

The credit market serves as a mechanism for registered parties to transfer LCFS credits to those who need them to comply.

How the LCFS Credit Market works

The LCFS sets carbon intensity (CI) reduction targets. To comply, organizations responsible for supplying fuels must have a balance of zero or more compliance units at the end of the annual reporting period.

LCFS credits represent a positive compliance unit number, while LCFS debits represent a negative compliance unit number.

To get LCFS credits, businesses can:

Market low carbon fuels
Undertake Initiative Agreement s
Purchase from those who have a surplus

Credit Market Scope

In 2022 and 2023, the credit market traded over 400 million dollars in credit value.

To calculate the LCFS credits for your new project:

Download and explore the LCFS Compliance Unit Calculator (XLSX, 75KB)

To view businesses that may want to trade LCFS credits, see:

RLCF-013: Transfer of Credits

More information on the scope of the market can be found in Table 10 of RLCF-007-2022: Renewable and Low Carbon Fuel Requirements Regulation Summary 2010-2022. This table is updated annually.

Credit Market Data

Download the October 2024 update: BC-LCFS Credit Market Data (2015 to present) (XLSX, 24.8KB)

To improve market information, credit transfers are categorized according to the date when credits reached a written agreement. The following categories were added starting with the June 2022 data and are reflected in the new Excel spreadsheet:

Category Type	Definition
Category A	The agreement to transfer credits was reached within six months of the credit transfer.
Category B	The agreement to transfer credits was reached between six months to one year prior to the credit transfer.
Category C	The agreement to transfer credits was reached more than one year prior to the credit transfer.
Category D	Transfers reported with zero or near-zero price.

Credit Transfer Activity

Anyone who elects to transfer LCFS credits must apply for approval by submitting a Credit Transfer Proposal online in the Transportation Fuels Reporting System (TFRS)

In some cases, businesses have entered into agreements to transfer credits at a set price over a multi-year period.

All credit transfers must be approved by the director and take effect on the date of approval. While processing times may vary, the average processing time for a credit transfer proposal is 3-5 business days.

Third-party Representation

Submit a Representation Agreement Notification Form (PDF, 120KB) to inform the ministry that an agent is authorized to act on behalf of your company in dealings with the ministry.

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