Xpansiv Launches First Low Carbon Fuel Standard Spot Contract with Broad First-Week Participation
LCFS spot contract sees over 54,000 LCFS credits traded by participants in first week.
NEW YORK, LONDON, SYDNEY — Xpansiv, the leading market infrastructure provider for the global energy transition, on Monday July 10th launched the first exchange-traded California Low Carbon Fuel Standard (LCFS) spot contract on its CBL spot exchange, the leading marketplace for environmental commodities, including carbon credits, renewable energy certificates, and digital fuels.
First-week trading volume totaled 54,376 LCFS credits with trades executed between $71.50 and $72.00. Anew Environmental, Skyview Finance Company, SRECTrade, and AQC Environmental Brokerage Services were among the first-week participants.
The LCFS market has quickly become one of the largest compliance environmental commodities markets in the world, with over 550 participants and nearly $4 billion in transaction value in 2022.
The CBL LCFS spot contract enables transparent price discovery, equal market access by all participants, the ability to trade without bilateral agreements, immediate settlement, and minimized counterparty credit risks. Launching the new contract on CBL enables hundreds of existing exchange participants to access the LCFS market.
“We are excited to participate in the new LCFS market on CBL’s spot exchange,” said Andrew Karetsky, President, Skyview Ventures. “Adding LCFS to its platform is fantastic for all market participants and we look forward to being actively involved in their marketplace.”
Market data from CBL’s centralized exchange, including bids, offers, transactions and daily settlement prices will provide a transparent, benchmark price signal for the LCFS market. Participants can use these prices in trading and risk models, to mark open positions to market, and as a reference price for related OTC derivatives transactions.
“The California Low Carbon Fuel Standard is a standout success among environmental programs,” said John Melby, Chief Executive Officer, Xpansiv. “We are pleased to launch our long-planned LCFS contract on CBL and are excited to see the immediate uptake from participants.”
Xpansiv operates the market infrastructure to rapidly scale the world’s energy transition. The company runs the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates. It is the premier provider of registry infrastructure for energy, power, and environmental markets. It also operates the largest independent platform for managing and selling solar renewable energy credits in North America.
Xpansiv is a leading provider of transaction and advisory services in global carbon, renewable energy, and energy transition markets through its Carbon Financial Services and Evolution Markets units. It also runs the leading multi-registry, multi-asset environmental portfolio management system and market data service.
Xpansiv’s rules-based markets and infrastructure enable stakeholders to deliver transparent, credible, and auditable environmental claims to address the growing global demand for assurance and accountability on climate action and sustainability performance.
For more information, please visit Xpansiv.com.