Credit Market
Last updated on April 3, 2024Part 3 (low carbon fuel) credits or debits represent the difference between the carbon intensity of a given transportation fuel and the current low carbon fuel requirements for that fuel class. For more information and a list of Part 3 fuel suppliers who are eligible for credit trading, see:
Part 3 fuel suppliers who wish to transfer validated credits must apply for approval by submitting a Credit Transfer Proposal online in the Transportation Fuels Reporting System (TFRS).
Credit Market Scope
Under section 6 of the Act, Part 3 fuel suppliers generate credits by supplying a fuel with a carbon intensity below the prescribed carbon intensity limit and incur debits when supplying a fuel with a carbon intensity above the limit (e.g. petroleum-based gasoline and diesel).
In addition, Part 3 fuel suppliers may also enter into Part 3 Agreements with the director under the Act to take actions that would have a reasonable possibility of reducing GHG emissions through the use of Part 3 fuels sooner than would occur without the agreed-upon action. 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 and is updated annually.
Credit Transfer Activity
Under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, Part 3 fuel suppliers may purchase credits in order to achieve compliance with the low carbon fuel requirements. Part 3 fuel suppliers enter into an agreement to transfer credits prior to submitting the transfer to the director for approval.
All credit transfers must be approved by the director and take effect on the date of approval. In some cases, Part 3 fuel suppliers have entered into agreements to transfer credits at a set price over a multi-year period. While processing times may vary, the average processing time for a credit transfer proposal is 3-5 business days.
To improve market information, credit transfers are categorized according to the date when the Part 3 fuel suppliers 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 Market Data
- March 2024 update: BC-LCFS Credit Market Data (2015 to present) (xlsx, 29 KB)
Please use the 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.