LCFS Credit Volume and Price Drop During Last Week in August

LCFS credit volume tumbled during the last week in August after reaching a 4-week high the week prior. Weekly volume of 74,834 was 81 percent below last week’s report and 83 percent uder the 2021 weekly average of 435,240.  Third quarter volume is 55 percent below second quarter volume and 12 percent below Q3 of 2020. There were 18 transactions during the week, down from 30 the week before. The weighted average price paid per credit fell $3.99 to $181.77. Of the 18 transactions posted, Type 1 transfers totaled 28,163 credits and Type 2 transfers were for 46,671 credits. Type 1 transfers accounted for 39 percent of the transactions and 38 percent of the volume.

Type 1 transactions are executed within 10 days of an agreement. Type 2 transactions are executed beyond 10 days of a transfer agreement. Type 1 transactions may provide a more accurate indication of market conditions and price…