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
The Nodal Exchange offers California Low Carbon Fuel Standard (LCFS) futures and options. The contracts are the first and only physically delivered LCFS futures contracts. 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% by 2022 and 20% by 2030.
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 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 Type | Futures | Options |
|---|---|---|
| Screen | $2.00 | $2.00 |
| Clearing | $2.50 | $2.50 |
| Settlement | $4.00 | $2.00 |
ADDITIONAL RESOURCES
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