There seems to be widespread corruption in German-funded environmental initiatives in China.
There are accusations concerning Upstream Emission Reduction Projects (UER) used by oil companies to meet legal climate targets in the transportation industry. Certified by the Federal Environment Agency, these projects involve reducing greenhouse gas emissions during oil production, allowing companies to offset their own CO2 emissions with the certified reductions. Compromised integrity might have caused damages worth as much as 4.5 billion euros to these companies.
STATE Secretary for the Environment Jan-Niclas Gesenhues reportedly believes the Ministry takes these allegations seriously. Since August 2023, they've been investigating into the issue. At the end of May, a criminal complaint was filed against unknown persons by the Federal Environment Agency. They are eager to have a full understanding of the situation.
Messner allegedly stated that of the 60 projects, two have been reversed, and two others have been halted. Although 36 other projects remain under scrutiny, serious doubts exist about whether the facilities mentioned in ten of these 40 cases actually exist. Additionally, information provided for another ten may not be entirely accurate.
Signs suggest a possible fraudulent scheme is in place. Investigations have focused on two employees of two certification companies, both connected to the 40 projects under suspicion. Yet, a complete understanding might require extensive research in China. A request for assistance was submitted to Chinese authorities but could take time to receive a response.
The Federal Environment Ministry stated that the entire UER system was established by the prior government in 2018, but its error-prone and opaque nature prompted the current federal government to terminate it early. In compliance with the original plan, the system will cease to operate at the end of the year, two years ahead of schedule.
