CARB proposes LCFS reform to realign credit values after renewable diesel influx

In California, Reuters reports The California Air Resource Board has proposed to make the Low Carbon Fuel Standard more strict regarding what it considers to be a low carbon fuel or not after a glut of renewable diesel pushed the value of credits to $71 per ton from the previous $200. Lower credit values will reduce incentives for producing cleaner fuels, so by tightening the rules, the amount of credits generated will decrease, helping to those credit prices to rebound.