Amendment to GHG Quota Act sets precedent for biofuel fraud prevention

The Union for the Promotion of Oil and Protein Plants (UFOP) has welcomed the measures to tighten fraud prevention provided for in the draft bill on the further development of the GHG reduction quota.
These include, in particular, the abolition of double counting and the requirement for on-site inspections by the competent authority.
If confirmation of such an audit is not provided, or if an on-site inspection confirms a suspicion of fraud, these biofuel quantities cannot be counted towards the GHG quota obligation in accordance with the draft law. The associated sustainability certificate is practically worthless.
UFOP expects that the stricter requirements will prompt companies in the mineral oil industry that are subject to quotas to scrutinise their sources of supply even more closely than before.
These measures are not least a result of the refusal of Chinese biofuel producers to investigate suspected fraud.
UFOP expects a corresponding corrective effect, which is also necessary in order to restore product confidence among end customers and politicians as a result of the suspected cases that have become known in the EU and third countries.
The necessity of this is confirmed once again by a recent suspicion of fraud in Malaysia involving mislabelled waste oil from palm oil.
UFOP therefore welcomes the end of the crediting of biofuels from residues from palm oil production, as provided for in the law, because the temptation is great and on-site control is difficult.
UFOP is calling on the German government to advocate for similar regulations at EU level, as member states are currently in the process of implementing RED III. In this context, UFOP is critical of the expansion of Annex IX Parts A and B of RED II to include raw materials from so-called intercropping.
UFOP has been highlighting the importance of fraud prevention in the development of the raw material composition for biodiesel and HVO.