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City of New Westminster Sells Low Carbon Credits for $26M

The City of New Westminster has sold British Columbia Low Carbon Fuel Standard (BC LCFS) credits it earned during the 2013-2020 period to Elbow River Marketing Ltd. for $26,395,700. These funds have been used to establish a new Climate Action Reserve Fund in the City’s budget to support New Westminster’s commitment to a zero carbon future.

In B.C., suppliers of transportation fuels with a high carbon intensity (such as gasoline or diesel) are required to reduce the carbon intensity of their fuels. One option to do so is through the purchase of low carbon fuel credits, which are generated by suppliers of transportation fuels with a low carbon intensity (such as electricity or biodiesel). New Westminster earns BC LCFS credits as a Part 3 classified supplier due to having its own electrical utility, and offered its credits for sale to qualified proponents in a competitive process.

The $26 million earned in the sale will fund a new reserve, established through the passing of the Climate Action Reserve Fund Bylaw No. 8321, 2022. The reserve will provide funding for one-time investments to accelerate projects, actions, or initiatives that support climate mitigation and adaptation by targeting energy and greenhouse gas reductions. The move is directly aligned with the City’s Seven Bold Steps for Climate Action.

Read the full release here.
Date posted:July 27, 2022