UPDATE – BC: Apply for low carbon credits with new propane baseline carbon intensity
The recent study from IHS Markit, conducted on behalf of the Canadian Propane Association (CPA), shows that propane’s carbon intensity produced in the Montney region and transported to a Western market hub has a value of 71 gCO2e/MJ. The BC Low Carbon Fuel Standard (LCFS) sets a baseline carbon intensity of propane at 75.35 gCO2e/MJ.
CPA members in BC should be using this new metric to apply for LCFS credits. Credits or debits represent the difference between the carbon intensity of a given transportation fuel and the current low-carbon fuel requirements for that fuel class.
Credits can be retained by fuel suppliers for future compliance years or traded with other fuel suppliers. To learn how to apply for credits, visit the BC Government website.
On May 9, 2022, the BC Government introduced legislation that will expand the scope of the LCFS to include more fuels, such as aviation and marine fuels, creating further opportunities for made-in-BC low-carbon fuel production.
The changes will also enable the province to issue credits to projects that capture carbon dioxide directly from the air. This will widen the pool of potential proponents eligible to earn LCFS compliance credits through agreements with the province for undertaking activities that increase the production and use of low-carbon fuels and reduce greenhouse gas emissions.
Please contact Katie Kachur for more information.