California LCFS Contracts on Nodal Exchange

Learn more about the California Low Carbon Fuel Standard (LCFS) program, helping lower transportation emissions since its implementation in 2011.

Market Background

Nodal Exchange offers California Low Carbon Fuel Standard (LCFS) futures and options. The contracts are the first and only physically delivered LCFS futures contract listed. The LCFS contracts are based on the California Low Carbon Fuel Standard program, which aims to reduce the carbon intensity of the state’s transportation fuel pool by 10% in 2022 and 20% by 2030. Over the first 10 years of the program, $10.7 billion in LCFS credits have been traded, according to the California Air Resources Board (CARB).

Key LCFS Producers

    • Ethanol
    • Biodiesel
    • Compressed natural gas and biogas (CNG)
    • Liquefied natural gas and biogas (LNG)
    • Hydrogen
    • Electricity for electric vehicles (EVs)

Benefits of Trading LCFS Futures on Nodal Exchange

  • A dynamic hedging tool for LCFS participants
  • First physically delivered LCFS futures
  • Standardized contract size
  • Competitive transaction costs
  • No membership or data fees
  • Experienced team dedicated to products and support
  • Trades are cleared through Nodal Clear

Benefits of Trading LCFS Futures on Nodal Exchange

  • A dynamic hedging tool for LCFS participants
  • First physically delivered LCFS futures
  • Standardized contract size
  • Competitive transaction costs
  • No membership or data fees
  • Experienced team dedicated to products and support
  • Trades are cleared through Nodal Clear

Contract Basics

    • Physically Delivered LCFS Contract
    • Contract Size: 100 LCFS Credits
    • Contract Series: Monthly contract, plus December contracts out 10 consecutive years
    • Minimum Tick Size: $0.01
    • Last Trading Day: Fourth to last business day of the month for expiring contracts
    • Delivery: Last business day of the month
    • Registry: Via the CARB LCFS Reporting Tool and Credit Bank and Transfer System
    • Both futures and options contracts listed

All Nodal Members are eligible to trade LCFS futures. Members who wish to engage in physical delivery of LCFS futures, deliverers (i.e. sellers in delivery) must meet the eligibility criteria established in the application to deliver.

Qualifying LCFS fuels generate different amounts of LCFS credits based on it’s carbon intensity score.

Fees

Fee TypeFuturesOptions
Screen$2.00$2.00
Clearing$2.50$2.50
Settlement$4.00$2.00

ADDITIONAL RESOURCES

PDF

California LCFS Product
Overview

Webpage

California LCFS Program
History Page

Webpage

RIN Products
Overview

Webpage

California LCFS Market
Background

Webpage

LCFS Programs
Overview Page

Webpage

RIN Markets
Background

This page is for illustrative purposes only. For official contract and trading information, please visit Nodal Exchange