German Drivers Paid Over €1 Billion for Fraudulent Climate Projects in China

Investigations reveal widespread fraud in emissions reduction schemes tied to Chinese oil projects, implicating 17 individuals and raising questions about oversight.

• German drivers unknowingly contributed up to €1.2 billion through fuel prices to fraudulent climate projects in China from 2020 to 2023, according to a DIW analysis.
• The projects, known as Upstream Emission Reduction (UER) initiatives, were meant to help oil companies meet emissions targets but are now largely under suspicion of being fabricated.
• The German Environment Agency (UBA) has flagged 45 of 66 Chinese projects as potentially fraudulent, with ongoing investigations targeting 17 individuals involved in certifying these schemes.
• Critics accuse Environment Minister Steffi Lemke of delayed action, while she attributes the flawed system to previous administrations and has since halted the use of such certificates.
• Although consumers may not face direct financial losses, experts warn the fraudulent projects undermined legitimate climate efforts, potentially harming global emissions reduction goals.

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Frankfurter Allgemeine Zeitung WELT