Germany Rejects Carbon Credit Certificates Over Alleged China Fraud

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Germany Rejects Carbon Credit Certificates Over Alleged China Fraud
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Germany rejected carbon credit certificates from eight Chinese projects due to concerns about fraudulent emission-reduction reporting.

The German Environment Agency on Friday said it had rejected carbon credit certificates from eight projects over concerns about fraudulent emission-reduction reporting and certification in China . The so-called Upstream Emission Reduction UER projects are being used by oil companies to meet the European Union’s regulations and targets of reducing greenhouse gas emissions. Companies earn green credits by funding emission-reduction initiatives in oil production, such as a halt to gas flaring.

The agency will review other critical UER projects worldwide until all allegations are addressed or cleared, UBA said. At the same time, the Berlin public prosecutor’s office is investigating 17 managing directors and employees at companies verifying the projects and carbon credits on suspicion of commercial fraud, the agency said. Germany, which launched the carbon offsets projects in China in 2018, will phase out the carbon credits from UER projects by the end of next year.

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