LCFS Credit Volume Surges During First Week of December

LCFS credit volume surged from 116,000 to 725,572 during the week ending December 5, 2021. Weekly volume was 500 percent over the prior week and 62 percent above the 2021 weekly average of 448,650.  Fourth quarter volume is 66 percent over third quarter volume and 71 percent above Q4 of 2020. There were 48 transactions during the week, up from 10 the week before. The weighted average price paid per credit increased $0.29 to $172.32. Of the 48 transactions posted, Type 1 transfers totaled 99,310 credits while Type 2 transfers accounted for 626,262 credits. Type 1 transfers were 19 percent of the transactions and 14 percent of the volume, according to the California Air Resources Board (CARB).

Type 1 transactions are executed within 10 days of an agreement and would be considered spot market trades. Type 2 transactions are executed beyond 10 days of a transfer agreement and do not provide a…