Low Carbon Transportation Programs
Third-party validation and verification ensuring the accuracy and credibility of emissions data and carbon reduction projects.
EBC Business Group
What is Low Carbon Transportation Programs?
Low‑carbon fuel initiatives aim to speed the global shift toward cleaner transportation by steadily lowering the carbon intensity (CI) of fuels used in different regions. These policies—implemented through programs like California’s LCFS, Canada’s CFR, and similar frameworks—set progressively stricter CI benchmarks that encourage the use of renewable fuels, electricity, hydrogen, and other lower‑emission energy sources. By establishing credit‑based compliance systems, they create incentives for fuel producers that demonstrate measurable emission reductions, while also allowing obligated entities flexibility in how they meet regulatory requirements. Together, these programs drive innovation, support national and regional climate strategies, and contribute to long‑term decarbonization of the transportation sector.
A key feature of these policies is the requirement for independent third‑party verification, which ensures that carbon‑intensity calculations and reported emissions values are accurate and trustworthy. Many leading standards—including LCFS, CFR, and the U.S. 45Z tax credit—mandate verification at a “reasonable assurance” level, a stringent threshold defined under ISO 14064 to validate that reported data falls within a ±5% accuracy range. This rigorous review process helps safeguard credit markets, prevents duplicate reporting, and strengthens confidence among regulators and credit purchasers. By embedding consistent and credible verification practices, low‑carbon fuel programs ensure that reported emissions reductions reflect actual, verifiable climate benefits.
Why Choose SCS?
SCS has been providing high-quality verification of biofuel and alternative fuel supply chains for over five years and has more than 25 years of experience in agriculture, greenhouse gas, and forestry certification. In addition to LCFS, SCS verifies sustainable supply chains under the International Sustainability and Carbon Certification (ISCC) system, the Roundtable on Sustainable Biomaterials (RSB), the Roundtable on Sustainable Palm Oil (RSPO), Bonsucro Certification (Better Sugarcane Initiative) and Colombian biofuel program (Resolution 1962).
- Low Carbon Programs
- Process
- Benefits
- Documents
45Z Clean Fuel Production Credit
The federal 45Z tax incentive supports the production of low‑carbon fuels such as renewable diesel and sustainable aviation fuel. To qualify, producers must determine lifecycle carbon‑intensity values using the 45ZCF‑GREET model and supply independently verified emissions information. Credit amounts vary based on fuel characteristics and adherence to wage and apprenticeship provisions.
Low Carbon Fuel Standard (LCFS)
California’s LCFS sets yearly targets that gradually lower the carbon intensity of transportation fuels. The program relies on a credit market and requires accredited third‑party validators to review fuel pathway carbon‑intensity calculations and operational data. Fuels such as renewable natural gas, electricity, ethanol, biodiesel, and renewable diesel can generate credits once their carbon‑intensity values are verified.
Canada Clean Fuel Regulation (CFR)
Canada’s CFR establishes mandatory carbon‑intensity reductions for gasoline and diesel, with a goal of reaching a 15% decrease by 2030. Regulated fuel suppliers can comply by reducing their own emissions intensity, creating credits, or buying verified credits from others. The regulation requires third‑party review of CI applications, material balance reporting, and annual pathway assessments.
Oregon Clean Fuels Program (CFP)
Oregon’s CFP is modeled after California’s LCFS and likewise sets progressive carbon‑intensity reduction goals to expand the use of clean fuels. Credits can be earned by supplying lower‑carbon fuels or advancing electrification initiatives. Fuel transactions reported quarterly must undergo independent verification to maintain program integrity and support clean‑transportation investments in the region.
M‑RETS
M‑RETS operates a registry that tracks Renewable Energy Certificates, Renewable Thermal Certificates, and renewable fuel attributes throughout North America. The system promotes accurate emissions accounting and prevents double counting. For renewable natural gas and similar fuels, annual carbon‑intensity verification is recommended to ensure data quality and consistency.
Transport Emission Reduction Certificate (TERC)
The TERC program validates greenhouse‑gas reductions attributed to alternative‑fuel projects in the United States. It allows producers to demonstrate credible emissions‑avoidance claims and trade certified reductions. The system uses the CARB carbon‑intensity calculator, and participants must provide emissions data that undergo routine independent verification.
ITC Strategy for Reducing GHG Emissions from Inland Transport
Backed by the United Nations, this strategy offers guidance to countries seeking to decarbonize inland transportation systems by mid‑century. It emphasizes coordinated policies, deployment of cleaner technologies, and transparent emissions reporting. Verification practices are an important component, helping improve data reliability and overall program effectiveness.
Green‑e® Renewable Fuels
Green‑e® certifies renewable fuels such as biomethane and enforces strict eligibility rules to ensure environmental credibility. Producers must demonstrate reductions in carbon intensity compared to fossil natural gas and undergo independent reviews of upstream emissions. The certification helps strengthen trust and transparency in voluntary renewable‑fuel markets.
Colombia Resolution
Colombia is developing a transportation decarbonization framework aligned with its national climate target of a 51% emissions reduction by 2030. The policy encourages the deployment of electric mobility solutions, adoption of zero‑emission vehicles, and improvements in fuel sustainability. Each year, participating entities must submit compliance reports that have been reviewed and verified by an external third party.
- Scoping and Project Initiation
- Client submits application and requests a quote for validation
- SCS confirms the project scope and provides the client a no-obligation price quote
- Client signs Work Order and returns to SCS to begin the validation process
- SCS prepares validation plan and sampling plan
- Onsite Audit
- SCS reviews client documentation prior to the on-site assessment
- SCS auditor conducts an onsite assessment of client operations
- SCS drafts validation report and provides client with a report of findings
- Corrective Actions
- Client responds to any necessary corrective actions
- SCS reviews and verifies the corrective actions
- Validation Report and Statement
- SCS completes validation report and validation statement
- Independent reviewer reviews the evidence and findings
- SCS finalizes the validation report and validation statement and submits to CARB
- SCS can also provide client marketing support
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5. Timeline:
Certification takes on average 3 months to complete from signed Work Order through to final decision. The timeline may depend on when an onsite audit is scheduled.
SCS Advantage
- Streamlined and responsive service from an experienced certification team
- Over 20 years of fuel consulting and verification experience
- Knowledgeable audit team including experts in life cycle emission modeling, fuel production and process engineering
- Approved vendors for all the programs listed, which allows for a streamlined approach when assisting entities with their verification needs across multiple programs
- Efficiencies for auditing fuel producers across multiple programs allows SCS to offer a discount to fuel producers involved in multiple Low Carbon Fuel programs.
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EBC Business Group
Service Brochure
Low Carbon Fuel Standard (LCFS) Brochure
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