Umwelt (German for environment or ecological niche) - Farmers stage scams with Palm Oil import for Biodiesel
The German Farmers' Association is complaining about fraudulent business practices in Biodiesel imports from China. "We are experiencing how the German market is being flooded with supposedly progressive Biodiesel based on recycled oil from China, which obviously comes from unlabelled Palm Oil," said Bernhard Krüsken, the Secretary-General of the Association, to the "Augsburger Allgemeinen".
Mineral oil companies could be reusing the barely controllable certificates of the questionable import fuel several times in their CO2 balance, Krüsken added. They bought accordingly less domestic Rapeseed Oil or Bioethanol for the prescribed addition in Diesel and Gasoline.
The damage cannot be precisely quantified. "But one can assume that German farmers are facing a high-digit million-dollar loss," said Krüsken. In addition, there is the general damage to climate policy and to trust in certification in third countries. Most Palm Oil plantations grow in large plantations in Malaysia and Indonesia.
The alleged fraud has been "more or less openly on the table" for more than a year and a half, revealed the representative of the association. However, despite pleas from domestic producers, the Federal Ministry for the Environment apparently sees no urgent need for action. The EU-mandated certificate system for biomass fuels produced abroad encourages fraud and misuse if the appointed company is not able to ensure and monitor compliance with the standards.
In the past few weeks, there has also been a scandal about alleged fraud in China regarding climate protection projects. Reports suggest that German mineral oil companies may have claimed multiple contributions to their CO2 balances for projects in China that probably never existed. Environment Minister Steffi Lemke (Greens) spoke of a "scam network" and "serious environmental crime".
Overall, according to Lemke, there are currently 40 of 69 projects in China that are under suspicion of fraud. This fraud was made possible by a mechanism that allows mineral oil companies in Germany to legally meet legally prescribed climate targets with climate protection projects in China.
- The German Farmers' Association believes that this fraudulent activity in Biodiesel imports from China is adversely affecting the traffic emissions in Germany.
- The alleged fraud in China's Energy sector has raised concerns within the Climate community in Germany, particularly the Agriculture sector.
- Bernhard Krüsken, the Secretary-General of the German Farmers' Association, has called upon the Augsburg General to investigate and address this issue seriously.
- The Mineral oil companies' unethical practices are not only affecting the farmers' revenue but also jeopardizing Germany's commitment towards a sustainable and eco-friendly future.
- The Chinese authorities need to take strict measures to curb such fraudulent activities in the Biodiesel sector, as it is affecting the global environment and the biodiversity, especially in countries like Germany.
- The Augsburg General has a crucial role to play in holding the Energy companies accountable for their actions and ensuring transparency in the Biodiesel import process.
- Bernhard Krüsken has urged the German government and the European Union to revise the certificate system for biomass fuels produced abroad to prevent such incidents of fraud and misuse in the future.
