UBA seeks to reverse deceitful climate initiatives in China.
The Federal Environmental Agency is scrutinizing 45 questionable climate projects in China due to potential fraud allegations. According to the agency's head, Dirk Messner, their aim is to invalidate all these dubious Chinese projects.
Messner stated, "We are not confident that even a small portion of these 45 projects could be legitimate." He added that these projects are surrounded by "extremely strong suspicions of fraud." It appears to be a case of "fraudulent contracting" where projects are falsely registered, failing to meet the stated requirements such as CO2 emission reduction, as explained.
So far, the agency has thoroughly investigated 56 climate projects in China and presented their preliminary findings, Messner further explained. This joint investigation, involving both the Berlin Public Prosecutor's Office and an international law firm, is ongoing. Even the ZDF show "Frontal" reported on the magnitude of the issue the previous week, citing the lawyer Christian Schefold appointed by the UBA.
45 out of 66 China projects under investigation for fraud
The current investigations stem from suspected fraud in the context of climate projects in China, revealed in June. It was suspected that German oil companies could have unjustly reduced their CO2 balance by including contributions from fraudulent climate protection projects, according to the UBA. Currently, at least 45 of the 66 projects in China are under investigation for irregularities.
Initially, the Federal Ministry of the Environment reported 69 projects in a July report, but this number was incorrect. This report referred to 66 projects in China and 75 projects globally that the UBA is currently examining, clarified a UBA spokesperson upon request.
Messner explained that these 45 projects amount to CO2 credits totaling six million tonnes of CO2 equivalent. The market value of these credits is estimated at 1.5 billion euros, according to UBA figures. However, only 0.004 million tonnes of these six million tonnes, already credited to companies' CO2 balance due to these projects, can be reversed and saved. As a result, fraud has caused an estimated 500 million euros in damage based on the issued certificates.
The Union, among others, is criticizing the UBA and the Ministry of the Environment for their handling of these suspected fraud cases. They accuse the agencies of responding too late to the fraud. However, the UBA claims that they had initial indications of individual cases in September 2023, which they pursued. Initially, the information was "hearsay," and the "anonymous informants" were initially not considered reliable. The UBA initially did not disclose specific companies or individuals involved, citing ongoing investigations.
The Commission, being the Federal Environmental Agency, is involved in the investigation of 45 suspicious climate projects in China due to alleged fraud. Despite the agency's thorough examination of 56 Chinese projects, Messner expresses doubt that any of the 45 under investigation could be legitimate, given the "extremely strong suspicions of fraud."
