Renewable & Low Carbon Fuel Requirements Regulation
- August Monthly Credit Market Report
- 2020 Part 3 Agreement Program Request for Proposals
- Annual carbon intensity reduction targets to achieve a 20% reduction in 2030
- New exemption limit starting 2021
B.C. Low Carbon Fuel Standard
The Greenhouse Gas Reduction (Renewable & Low Carbon Fuel Requirements) Act and the Renewable & Low Carbon Fuel Requirements Regulation, known collectively as British Columbia’s low carbon fuel standard (BC-LCFS), was introduced to reduce the carbon intensity (CI) of fuels used in the province.
- The BC-LCFS sets CI targets that decline each year.
- Fuel suppliers generate credits for supplying fuels with a CI below the targets and receive debits for supplying fuels with a CI above the targets.
- The debits and credits are proportional to the emissions a fuel generates over its full life cycle.
- Credits can be traded between fuel suppliers or banked for future use.
- At the end of each compliance period, suppliers must have a balance of zero or more credits to avoid non-compliance penalties.
The credit market creates a financial incentive to reward low-carbon fuels in proportion to the amount of real, measurable emissions reductions they yield when substituted for conventional fuels. This generates revenue for low carbon transportation fuel suppliers and supports investment in clean fuels and vehicles. Visit Credit Market for more information.