Tag: carbon credits

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BC Carbon Credits: Compliance Reporting Deadline Coming Up

November 2024

Has your strata been charging EVs and collecting carbon credits? Are you paying a high commission to your charging network operator to monetize carbon credits on your behalf?

Carbon Credits (market trade-able assets generated by British Columbia stratas who provide EV charging infrastructure to residents and visitors) are an important part of your cost-recovery opportunities.

If your strata has EV charging infrastructure in place, the Low Carbon Fuels Act in British Columbia provides an opportunity for you to more than recover your costs of electricity from EV charging. With few exceptions, every strata in BC with more than four dwelling units is eligible. In fact, reporting is required by the Act, except there is no penalty in the regulations — but there is the loss of the value of the carbon credits involved.

How much is this worth to your Strata?

Typically, the average EV uses 2,700kWh for 15,000km driving or for a typical strata about $300 worth of electricity. The resulting proceeds are variable and based on market prices at the time of sale, but on recent market pricing per EV value could range up to $1000 to the strata. Best yet, the owner of the carbon credits is the strata, and therefore these new funds flow into the annual strata budget to be used as any other revenue source. It’s a key consideration for councils hoping to provide low fee, cost recovery EV charging services to your residents and guests.


However, not every strata knows about this opportunity or taken it into account when projecting charging revenue. Unfortunately, some early adopters have even signed network service agreement where that revenue goes to the network operator. Credits are reported annually, so that government can validate their eligibility for trading on the open market to organizations seeking to offset their emissions and meet government standards for carbon generation.

How does Carbex help you?

Carbex navigates the complex regulatory compliance system to register and report your credits, and most importantly aggregates your credits to tradable volumes that transport fuel industry buyers are interested in.

Electric Advantage affiliate Carbex Carbon Credit Exchange Corp. is taking on new carbon clients until February 15, 2025 to meet the upcoming spring deadline for processing and reporting 2024 carbon credits.

Contact Carbex

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Increased carbon reduction target bodes well for carbon credit pricing in BC

Accelerating action on climate change is increasing the market value of carbon credits. Fortunately, coal is not burned in BC’s hydro dominated electrical grid.

Since 2008, British Columbia has had carbon credit trading legislation that enables transportation fuel providers to purchase carbon credit generators to make up shortfalls of legislated carbon intensity reductions. The Low Carbon Fuel Standard was originally set to reduce the carbon intensity of transportation fuels by 20% between 2010 and 2030. On December 20, 2022, the Ministry of Energy, Mines and Low Carbon Innovation announced a change in the Regulations that accelerates annual carbon intensity reduction targets effective January 1, 2023.

The 20% carbon intensity reduction target has now been set to 30%

As each annual reduction of intensity takes effect on January 1st, fossil fuel providers must ensure they have achieved enough reduction in carbon intensity, or purchase additional credits to meet the regulation. As a result the value of these credits has risen steadily as transportation fuel producers continue to sell gasoline or diesel. Now, the annual reduction of carbon intensity will become a steeper, linear drop over the next 7 years bolstering demand for credits.

What will be the effect on pricing? There are a number of factors. As stated above, it is getting harder to reduce carbon intensities from the existing fuel production processes. That’s driving up prices. Expansion of the LCFS to other transportation fuels, such as aviation and rail would also drive up the demand for credits. This is currently under consideration by the government.

On the other hand, MURB EV charging will grow the supply of credits to this market over time. Currently the amount generated is insignificant to the existing transfer activity. But demand for credits from the oil & gas industry may also drop by current changes they are making to reduce carbon intensities.

Renewable diesel is the buzz word right now in the industry. Agricultural crops will be used to produce a diesel fuel that is identical to petroleum diesel in use and performance. New plant capacity being built in Alberta is underway specifically to serve the British Columbia market and avoid having to purchase credits. Whether the supply will come on fast enough, or, in fact will be cheaper for the industry is yet to be seen.

In the short term, it seems the trend will be for increased demand for credits and increased credit transfer prices. That may not last – if it does, the silver lining is that we are in fact achieving our GHG reduction targets, and the world will be a better place.

The Low Carbon Fuel Standard is working, as designed, to reduce carbon emissions in transportation fuels in BC.

BC LCFS carbon credits have risen in value and volumes in the past two years. Now with a 30% reduction in carbon intensity, demand for credits, and prices should remain buoyant. Data from BC Government/EMLI

Electric Advantage offers carbon credit administration services bundled with annual reviews of EV charging operations to ensure your organization has optimal policies to obtain maximum value from your investment in EV charging infrastructure.

Source: https://news.gov.bc.ca/releases/2022EMLI0066-001925