LCFS Credit Volume Begins to Slow

LCFS credit volume for the week ending January 16, 2022, of 739,527 was 43 percent below last week and fractionally under last year’s volume for the same period. January trading remains robust as participants continued to square positions with year-end reporting. The market might expect to see one more week with somewhat heavy volume before trading volume quickly fades.   

First quarter volume is 11 percent below fourth quarter volume but 4.5 percent above Q1 of 2020. There were 76 transactions during the week, down from 121 the week before. The weighted average price paid per credit increased $0.94 to $169.64. Of the 76 transactions posted, Type 1 transfers totaled 109,664 credits while Type 2 transfers accounted for 629,863 credits. Type 1 transfers were 22 percent of the transactions and 15 percent of the volume, according to the California Air Resources Board (CARB).

Type 1 transactions are…