SUBSCRIBER NOTE: Platts proposes to launch quarter LCFS carbon credit assessment

Following a review of feedback Platts proposes to launch a daily price assessment for carbon credits under the Low Carbon Fuel Standard (LCSF) as defined by the California Air Resources Board (CARB) with effect 3 January, 2017.

Platts would assess carbon credits that are to be transferred before the end of the current quarter and next quarter. Platts would continue to publish the current quarter and next quarter values up until the 15th of the last month of that quarter. The assessment would roll on 15th, unless that day is not a business day, in which case the assessment rolls over on the preceding business day.

For example on December 14 Platts would assess carbon credits for transfer in Q4 2016 and carbon credits for transfer in Q1 2017. On December 15 Platts would assess carbon credits for transfer in Q1 2017 and carbon credits for transfer in Q2 2017.

The assessments would be in US dollars per metric ton (MT) of carbon dioxide equivalent and would be published in the Platts Biofuelscan and on the Platts Biofuels Alert real time service.

This proposal follows an initial proposal subscriber note that was published October 7, 2016.

The move to assess quarterly carbon credits follows industry feedback to better reflect market trading patterns and hedging capabilities.

Platts welcomes all further feedback and questions on the proposed assessment through to November 16, 2016. Please send all questions and feedback to america_ags@platts.com with CC to pricemethodology@platts.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.