A boom in renewable diesel production has led to a drastic decrease in California’s low-carbon fuel credit prices, affecting the economic viability of other renewable-energy projects and illustrating how unanticipated market dynamics can compromise government objectives, the Wall Street Journal reports. Renewable diesel, which now accounts for nearly 50% of the diesel used in California, has helped the state reduce greenhouse-gas emissions by about 13% since the Low Carbon Fuel Standard program was implemented in 2011. However, the unexpected credit-price drop has caused the economics of some projects to become marginal, leading to delays or cancellations, and the California Air Resources Board is now considering increasing its 2030 carbon-reduction goal to boost credit prices.
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