Argus launches California LCFS assessment

Global energy and commodity price reporting agency Argus has launched the first published market price assessment for California Low Carbon Fuel Standard credits. Argus' expanded coverage of California emissions markets includes weekly spot assessments of the LCFS credits.

The new data will be published weekly in Argus Air Daily, Argus US Products and Argus US Ethanol. Through these market services, Argus offers extensive renewable energy market price data.

The LCFS is designed to reduce the carbon intensity of California's transport fuels by 10 percent by 2020. The program is part of a suite of measures to reduce greenhouse gas emissions from 2013, including a cap-and-trade scheme and a renewable portfolio standard.

LCFS credits are generated by selling low-carbon intensity transport fuels for use in California, such as biofuels, natural gas or low-carbon electricity. Fuel producers are rewarded with LCFS credits by the California Air Resources Board for the amount that they reduce their transport fuel's carbon intensity below their annual target.

Argus already offers expansive coverage of the growing California emissions market, providing daily market assessments of California Carbon Allowances and their volume-weighted average for December 2013 delivery, California renewable energy certificates (RECs) and Green-e voluntary RECs for the Western Electricity Coordinating Council area. In other North American carbon markets, Argus publishes volume-weighted average indexes for the Regional Greenhouse Gas Initiative states, as well as price assessments for Alberta Carbon Offsets and carbon offsets issued by the Climate Action Reserve.