California LCFS accepts ISCC EU as eligible certification scheme

California's Low Carbon Fuel Standard programme has recognized ISCC EU as an eligible certification scheme, creating new compliance pathways for companies participating in North American low-carbon fuel and biomass supply chains as sustainability requirements for feedstock certification phase in ahead of 2028 implementation.

The California Air Resources Board's updated LCFS framework now recognizes voluntary certification schemes previously approved under the European Union Renewable Energy Directive, including ISCC EU, aligning California's requirements with established international sustainability standards.

The development comes as LCFS requirements to maintain sustainability certification for biomass phase in, with full implementation starting in 2028, though ISCC certification already covers the complete requirements, according to ISCC System statement on Aug 12..

The LCFS aims to reduce the carbon intensity of transportation fuels used in California by incentivizing lower-carbon alternatives and promoting sustainable feedstock sourcing. The programme is one of the world's most influential clean fuel initiatives and has served as a model for similar policies in other jurisdictions, industry participants said.

"As a leading EU RED-recognized certification system, and with a global footprint on renewable fuels under many jurisdictions, ISCC is uniquely well-positioned to support companies operating across international supply chains and serving the North American market," ISCC System Director Jan Henke said in the statement.

Market implications

The recognition creates opportunities for market participants seeking to demonstrate compliance with sustainability requirements under the LCFS while maintaining access to other regulated markets including those governed by the EU RED.

Companies with existing ISCC EU certification or those adopting the certification early can support preparedness for future LCFS requirements while enabling access to multiple recognized markets through a single certification system, according to ISCC.

The development comes at a time of growing demand for sustainable biomass and low-carbon fuels across North America.

ISCC has worked with stakeholders across the US and Canada for several years to support the transition to clean and alternative fuels as well as circular and bioeconomy development, reflected in the ISCC Regional Stakeholder Committee for North America, which has brought together regulators, industry representatives, certification bodies and experts since 2012.

ISCC is now accepting applications for pilot projects from companies interested in leading the adoption of LCFS certification.

The organization said it will closely monitor regulatory developments and engage with relevant stakeholders to better understand implementation expectations and support smooth market adoption.

The ISCC EU certification scheme verifies compliance with the EU's legal requirements for sustainability and greenhouse gas emissions savings criteria for renewable fuels, as well as production of electricity, heating and cooling from biomass. ISCC combines harmonized sustainability requirements, accredited third-party audits, transparent governance and continuous oversight to provide confidence for regulators, businesses and consumers, according to the organization.