Low Carbon Fuel Standard (LCFS) credits

California’s Low Carbon Fuel Standard aims to reduce the carbon intensity of transportation fuels by promoting cleaner alternatives like biofuels, electricity, and hydrogen. Organizations that produce or use low-carbon fuels generate LCFS credits, which can be sold to fuel providers that need to offset their emissions to meet regulatory targets. The value of these credits fluctuates based on supply, demand, and policy adjustments, making the market dynamic and responsive to environmental goals.