Suspected environmental crime - Fraud in China: Lemke announces halt to climate projects
Environment Minister Steffi Lemke (Greens) announced an immediate stop to the affected activities in connection with the affair of fraud in climate protection projects in China. It is possible that this is a case of "serious environmental criminality," Lemke stated in the Bundestag. "I take these allegations very seriously. We have reason to believe that this is a fraud attempt, a fraud network." The system was stopped on July 1st. Since then, it has not been possible for German mineral oil companies to apply for new projects in the suspected fraud system.
Lemke sees "shaken trust"
The background is that German companies may have claimed multiple climate protection contributions that never existed - because some projects in China may not have existed. "It's clear that trust has been shaken, and that's why these allegations must be addressed consequently," Lemke emphasized.
The Federal Environment Agency is investigating all tips on suspected fraud, the minister assured. "Consistent clarification is being pursued." It was a mistake of the previous government to introduce this fraudulent system in the first place, Lemke stated in the Environment Committee of the Bundestag. There, the minister had to answer questions about the dubious past developments in the afternoon. Sharp criticism on handling the alleged fraud cases came from the Union.
These opportunities were made possible by a mechanism that allows mineral oil companies in Germany to improve their greenhouse gas targets through climate protection projects in China. In this system, companies can improve their greenhouse gas balances if CO2 emissions are saved within the supply chain - even abroad.
Companies can therefore finance projects 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 target in the transport sector. Authorized are the projects, for which all new applications are now stopped, by the Federal Environment Agency, a subordinate authority of the Environment Ministry.
40 of 69 projects under suspicion
Lemke stated in the Environment Committee that of the total of 69 projects in China, currently 40 are under particular scrutiny due to suspicions of fraud. An application has also been filed with the Berlin Public Prosecutor's Office. Two of the projects are being "revoked due to violations," Lemke further stated. The Federal Environment Agency is currently examining all projects in China as well as ten others. According to statements from Ingrid Hanhoff, department head in the Environment Ministry, this includes projects in Nicaragua, Uzbekistan, and Azerbaijan. Hanhoff emphasized in response to questions from the AfD in the committee, that in all these developments, German drivers and drivers were not harmed. However, environmental and climate protection had suffered significant damage.
The environmental policy spokesperson for the Union faction, Anja Weisgerber, spoke of a "failure of control" for which Lemke would be responsible. "The Minister carries the political responsibility and is coming increasingly under pressure," she said after the committee meeting. Lemke had left many questions open. "The Minister must allow herself to be pleased with the question of how such a large number of obvious errors could go unnoticed for years." In addition, it was incomprehensible why the proceedings were only stopped with effect from 1st July.
Lemke, in turn, sees the responsibility with the previous government from Union and SPD. Regarding the cleanup schedule, Lemke explained that the UBA had first reported a case to her ministry at the end of August last year. This had been "vague." However, towards the end of the year, the indications of possible fraud had become clearer, the Minister stated. Lemke admitted that the control of activities did not function at every level.
This weakness was also emphasized by UBA head Dirk Messner recently in an interview with "Welt am Sonntag." He explained that the China projects on site were not checked by his office, but by certification companies. "The oversight mechanism is based on trust in the certifiers and validators," he said. The UBA is reaching "the limits of provability" in this regard.
- Steffi Lemke, the German Environment Minister, highlighted that the suspected fraud in climate protection projects in China could be a case of "environmental criminality."
- The Federal Environment Agency, a subordinate authority of the Environment Ministry, is investigating all tips related to suspected fraud in China.
- Mineral oil companies in Germany can finance climate protection projects in China through a mechanism that allows them to improve their greenhouse gas targets.
- The scandal surrounding the fraudulent system has shaken trust, and Steffi Lemke emphasized the need for consecutive action to address the allegations.
- Of the 69 projects in China, 40 are under scrutiny due to suspicions of fraud, and two have been "revoked due to violations."
- Anja Weisgerber, the environmental policy spokesperson for the Union faction, criticized the previous government for the "failure of control" and the late response to the allegations of fraud.
