Low Carbon Fuel Standard credit market

Last updated on April 30, 2025

The Low Carbon Fuel Standard (LCFS) credit market is a way for registered parties to participate in the exchange of compliance units.

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How it works

Compliance

The LCFS sets carbon intensity (CI) reduction targets. Organizations that supply fuels must have a balance of zero or positive number of compliance units at the end of the annual reporting period.

Credits are a positive compliance unit number.

Debits are a negative compliance unit number.

Obtain credits

To get LCFS credits, businesses can:

Buy or sell credits

Some credit market participants are listed in RLCF-013: Validation and Transfer of Credits. This list includes participants who consented to display their contact information and does not capture all participants in the market. The contact information provided was correct at the time of publication.

Credit value

The market determines the value of a credit by its supply and demand dynamics.

View credit market data for information on: 

  • Credit transfers
  • Volume transferred
  • Prices

Credit market scope

In 2024 the credit market traded over $600 million (CAD) in credit value.

Review detailed information on the scope of the market in Table 10 of:

Calculate the LCFS credits you can earn for supplying low carbon fuel:

Credit market data

To provide better market information, we categorize credit transfers based on the date a written agreement was made.

Category definitions


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 six months to one year before the credit transfer.


Category C

The agreement to transfer credits was reached more than one year before the credit transfer.


Category D

Transfers reported at zero or near-zero price.


Transfer activity

All LCFS credit transfers need approval

Submit proposals online with the LCFS Portal

  • Agreements to transfer credits can have a set price over a multi-year period
  • Approved credit transfers take effect on the date of approval

Processing times

Processing times may vary.

The average processing time for a credit transfer proposal is 3 to 5 business days. The processing time may increase if further information is required from one or both parties.

Third party representation

To trade credits on behalf of another organization fill out a representation agreement. Representation agreements enable an organization to represent other organizations with credit transactions.

Contact information

Have questions or need help? Reach out to the Low Carbon Fuels Branch.

Address
Low Carbon Fuels Branch
Ministry of Energy and Climate Solutions
PO BOX 9314 STN PROV GOVT
Victoria BC V8W 9N1