The LCFS is a regulatory program designed to reduce greenhouse gas emissions from the transportation sector by setting annual carbon intensity (CI) targets for fuels. The LCFS incentivizes the production and use of lower-carbon fuels through a credit trading system. Fuel producers that exceed CI reduction targets can sell credits to those that do not meet the targets.

‍Key Points:
- The LCFS incentivizes the production and use of lower-carbon fuels.
- It includes a credit trading system where fuel producers that exceed CI reduction targets can sell credits to those that do not meet the targets.
- The program has driven significant investment in low-carbon technologies and alternative fuels.

The Low Carbon Fuel Standard (LCFS) is a regulatory program administered by the California Air Resources Board (CARB) that aims to reduce greenhouse gas emissions in the transportation sector by setting progressively lower annual carbon intensity (CI) targets for fuels. It incentivizes the production and use of cleaner, low-carbon fuels through a credit trading system, where fuel producers exceeding CI reduction targets can sell credits to those falling short. By driving investment in low-carbon technologies and alternative fuels, the LCFS supports the adoption of cleaner fuels, provides a market for low-carbon fuel credits to meet regulatory requirements, and helps achieve climate goals. Businesses participate in the LCFS to align with environmental regulations, reduce emissions, and contribute to a more sustainable transportation sector.

Benefits to Customers:
- Encourages the adoption of cleaner fuels and technologies.
- Provides a market for low-carbon fuel credits, which can be traded to meet regulatory requirements.
- Supports the state’s climate goals by reducing transportation emissions