CXF Standard · Technical documentation
The CXF Methodology
Version 1.0 draft · Published July 2026 · CarbonXFuture Markets, Inc., Fort Lauderdale, Florida
The CXF Methodology is CarbonXFuture's framework for originating, screening and quantifying greenhouse-gas emission reductions from used engine oil recycling — the most overlooked stream in the circular economy. It is published here in full so that counterparties, buyers and reviewers can see exactly how CXF figures are produced, what is already operational, and what is still under development.
Transparency note. CXF is a proprietary framework operated by CarbonXFuture. It is aligned with — but distinct from — the American Carbon Registry's approved Re-Refining Used Lubricating Oils methodology (v1.0, Feb 2019). Registry-grade offset credits are only created after independent third-party validation, verification and issuance by the applicable registry. Platform estimates produced under this methodology are indicative deal-sizing figures, never "issued credits".
Module A — Re-refining Operational screening
Module A governs how CarbonXFuture screens and models re-refining counterparties whose projects are capable of generating registry-eligible credits.
A.1 Eligibility screen
- Location: project site in North America (US, Canada, Mexico).
- Output quality: re-refined base oil meets API Standard 1509 (15th Ed.) or equivalent — batch lab certificates required.
- Feedstock integrity: input is genuinely used lubricating oil (engine, hydraulic, transmission/gear oil); virgin-oil blending disqualifies.
- Licensing: valid used-oil processor license (in Florida: FDEP used-oil handler/processor registration; equivalents elsewhere).
- Regulatory surplus: re-refining must not be legally mandated for the operator.
- Operating history: facilities operating >10 years require a Historic Baseline Production (HBP) adjustment.
A.2 Quantification workflow
Indicative emission reductions per reporting period t follow a four-step calculation:
Step 1 — Baseline (BEt): gallons of re-refined base oil (− HBP, if applicable) × 0.0402 GJ/L heat content × 20 kgC/GJ × 44/12
Step 2 — Project emissions (PEt): facility electricity (MWh × regional eGRID factor) + fuels (EIA emission factors)
Step 3 — Leakage (LEt): baseline heat content × 18.867 kgCO₂/GJ replacement-fuel factor × 44/12
Step 4 — Net reductions: ERt = BEt − PEt − LEt
ERt is an indicative tCO₂e figure — it becomes a credit count only after independent validation, verification and registry issuance.
A.3 Monitoring (MRV) requirements
- Chain-of-custody: origin, volume and collection date of every used-oil load.
- Delivery records to the re-refinery; homogenization evidence; incoming feedstock testing.
- Production records isolating re-refined base oil from co-products; annual yield reporting per site.
- Utility invoices (electricity) and fuel purchase records for project emissions.
- Operating licenses and, where applicable, hazardous-waste handling documentation.
Module B — Collection infrastructure In development
A large share of used oil in North America is never collected: it is dumped into drains, soil or general waste. Module B extends crediting upstream, to the establishment or expansion of collection infrastructure (collection points, containers, logistics with independent garages, fleets and marinas) in areas with documented below-average collection rates, where collected oil is verifiably delivered to an eligible re-refinery.
B.1 Baseline
The documented status-quo collection rate in the project area before intervention, established by a project- or region-specific baseline survey (collection and dumping rates vary significantly by region).
B.2 Additionality tests
- Regulatory surplus: the infrastructure is not mandated by federal, state or local regulation.
- Investment barrier: without carbon finance, the investment is not commercially viable at prevailing used-oil scrap values.
- Performance standard: the area's pre-project collection rate is below the regional benchmark.
B.3 Quantification (illustrative)
BEcollect,t = (HCv × ΔQcollected,t × 3.78541 × CCLO / 1,000) × (44/12)
PEcollect,t = Σ(Dk,t × EFtransport) (collection-route transport emissions)
ERcollect,t = BEcollect,t − PEcollect,t
ΔQ = incremental gallons collected above the baseline volume. Accounted separately from Module A to prevent double-counting. The appropriate emission-factor treatment of avoided dumping is one of the open technical questions under registry review.
B.4 Monitoring parameters
- Volume collected per route/collection point (weighbridge or volumetric metering), with date and origin.
- Delivery confirmations cross-referenced with re-refinery intake records.
- Vehicle type, distance and fuel per collection route.
- Baseline collection-rate documentation for the project area.
Verification & issuance path
- Project proponents register directly with the applicable registry and engage an approved independent validation/verification body (VVB).
- Emission reductions are validated, then verified, before the registry issues credits (1 credit = 1 tCO₂e) to the proponent's account.
- Only issued credits can be transferred, sold or retired — this is where the CarbonXFuture marketplace operates.
Status & roadmap
| Component | Status | Notes |
|---|
| Module A — counterparty screening & indicative modeling | Active | Applied to all re-refining counterparties on the platform |
| Module B — collection infrastructure crediting | Concept stage | Draft concept note prepared for formal registry methodology development and public stakeholder review |
| ICVCM Core Carbon Principles alignment | In progress | Alignment assessment planned for future issuance cycles |
Florida regulatory context
Used-oil collectors, transporters and processors in Florida operate under the Florida Department of Environmental Protection (FDEP) used-oil management program and federal RCRA used-oil standards (40 CFR Part 279). Florida-sourced counterparties must provide current FDEP registration as part of the Module A eligibility screen.
Disclaimer. This page describes CarbonXFuture's proprietary CXF framework and is provided for transparency. It is not an offer, not investment advice, and does not represent that any registry has approved, endorsed or issued credits under this framework. Figures produced under this methodology are indicative until independently verified. Questions:
desk@carbonxfuture.com.