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CO2 projects in China: Union demands clarification from Lemke

At least ten climate projects in China, from which German oil companies have profited, are alleged to have been fraudulent. Environment Minister Lemke will be questioned about this in the Environment Committee at midday.

,   and  Ksenia Johnson
3 min read
At least ten climate projects in China, from which German oil companies have profited, are alleged...
At least ten climate projects in China, from which German oil companies have profited, are alleged to have been fraudulent. The CDU/CSU is calling for clarification.

Climate projects - CO2 projects in China: Union demands clarification from Lemke

In the affair regarding possibly falsified climate change certificates, the Union's Federal Environment Minister, Steffi Lemke (Greens), is demanding clear clarification from Bundesumweltministerin Steffi Lemke (Greens) following reports that no progress had been made for months. "We're seeing increasingly that nothing has been dealt with for months, and that needs to be clarified," said Anja Weisgerber, the environmental policy spokesperson for the Union faction, to the news agency dpa. This is a "control failure," for which Lemke bears responsibility. She must therefore make clarification a top priority, emphasized Weisgerber just before the Environmental Committee session in the German Bundestag. There, Lemke must answer questions about irregularities in relation to climate protection projects in China at noon.

Background involves allegations of fraud surrounding projects located in China, where mineral oil companies in Germany can meet their legally mandated climate targets by improving their greenhouse gas quotas – even abroad. They can finance projects, such as those where emissions are reduced in the oil sector, and receive corresponding certificates for their climate balance in Germany. These "Upstream Emission Reduction" projects (UER) are then credited against the greenhouse gas reduction quota in the transport sector. These projects are authorized by the Federal Environment Office, a subordinate authority of the Environment Ministry.

Indications point to a fraud network

According to the Federal Environment Office (UBA), follow-up examinations have shown that 40 out of 60 projects in China require further intensive investigation. The Union shares this view. As it turns out, there are already "particularly clear indications" that suggest fraud for ten of these projects. Therefore, the UBA has filed a criminal complaint with the Berlin Public Prosecutor's Office. There are now indications that point clearly to a fraud network. In other words: German companies may have claimed a climate contribution that never existed – because some projects in China may not have existed at all.

UBA Chief Dirk Messner recently told "Welt am Sonntag" that the China projects are not inspected on site by his agency but rather by certification companies. "The oversight mechanism is based on trust in the certifiers and validators," Messner said. The UBA is now "reaching the limits of provability."

Anrechnung is prematurely terminated

According to Messner, the UBA received initial indications in late August 2023. Lemke's ministry reportedly learned of the allegations of irregularities regarding one project in the last quarter of 2023 from the UBA. In early January 2024, a ministry spokesperson confirmed on request that several projects had received complaints from market participants. The ministry then decided to terminate the recognition of UER in January. The CSU politician Weisgerber criticizes that this step may have come too late. "The Federal Environment Agency should have informed the Environment Ministry earlier."

  1. Steffi Lemke, the Green Party's Union parliamentary group leader and Federal Environment Minister, is under scrutiny due to reports of no progress in addressing allegations of falsified climate change certificates in projects in China for months.
  2. The alleged fraud involves mineral oil companies in Germany claiming climate contributions by financing projects in China, where emissions are reduced, allowing them to meet their legally mandated climate targets.
  3. In response to these allegations, the Federal Environment Office (UBA) conducted follow-up examinations, revealing that 40 out of 60 projects require further investigation, and there are "particularly clear indications" of fraud for ten projects.
  4. As a result, the UBA filed a criminal complaint with the Berlin Public Prosecutor's Office, raising concerns that German companies may have claimed a nonexistent climate contribution as some projects in China may not have existed at all.
  5. Anja Weisgerber, the environmental policy spokesperson for the Union faction, criticized the Federal Environment Agency for not informing the Environment Ministry earlier about the allegations, suggesting that the ministry's decision to terminate the recognition of Upstream Emission Reduction projects (UER) in January may have come too late.

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