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Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Carbon credits · Germany · 2024

Germany rejects 215,000 carbon credits from Chinese oil-sector projects

Short record: the main facts, with sources. A full case file has not been prepared.

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured.
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 2 none on record · 1 not measured See the gaps

Credits from upstream emission reduction projects in China were used to meet part of Germany's fuel quota. After re-examination, the environment agency rejected 215,000 credits in September 2024 and the system was closed.

What?
German authorities re-examined Chinese upstream emission reduction projects whose credits were used under the German fuel quota, and the system was closed. Clean Energy Wire
Where?
Germany (the agency, prosecutors and fuel-quota market); projects in China
When?
Projects re-examined in July 2024; credits rejected in September 2024
Who?
Gained
  • Shell — Named among companies that used the credits, as reported by ZDF Clean Energy Wire
  • TotalEnergies — Named among companies that used the credits, as reported by ZDF Clean Energy Wire
Lost
  • Holders of certificates from the suspect projects — No new credits are issued, but certificates already held can still be traded Clean Energy Wire
Harmed
None on record
Why?
Not stated in the sources reviewed.
How?
German oil companies covered part of their fuel-quota obligation with credits from upstream emission reduction projects in China, which German certification bodies had approved and verified. Clean Energy Wire
6 of 6 questions answered from the record

What happened

The record, in order.

Clean Energy Wire reported in July 2024 that Germany's Federal Environment Agency (UBA) had re-examined 40 of 69 Chinese projects that German certification bodies had approved and verified.

ZDF estimated the value of the suspect projects at over 600 million euros, and Shell and TotalEnergies were named among the companies that used the credits.

ESG Post reported that in September 2024 UBA rejected the credits of eight projects, 215,000 credits worth about 18 million euros, and that Berlin prosecutors are investigating 17 people linked to verification bodies on suspicion of commercial fraud.

Clean Energy Wire reported that UBA suspended an official responsible for approvals.

    In court and with insurers

    Every proceeding and every insurer decision on record.

    Lawsuits and rulings

    No court case on record. No court has ruled on this case.

    Insurers

    No insurer decision on record.

    What we don't know

    Undisclosed, unproven, untried: recorded as data.

    Nature

    • Not measured Harm to nature: The record holds no measurement of harm to nature.

    Record

    • None on record Not stated: whether Shell's or TotalEnergies' own credits were among those rejected.
    • None on record Not stated: the outcome of the Berlin prosecutors' investigation.

    Did the harm stop?

    Not stated in the sources reviewed.

    Who paid?

    Not stated in the sources reviewed.

    Sources

    Voices on record: — Company or project— Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

    Connected cases

    Related matters, and cases linked to this one through the same organisations, with the role each played in both.

    Carbon and conservation finance

    Carbon credit
    A certificate representing one tonne of carbon dioxide (or equivalent) that a project says it reduced, avoided or removed. Buyers use credits to balance their own emissions in climate claims.
    ESG
    Environmental, social and governance criteria that investors and insurers use to screen companies and projects.

    Law and courts

    Arbitration
    A private dispute process in which an appointed arbitrator, instead of a court, decides the case.

    Insurance

    Underwriter
    An insurer, or a person at an insurer, who assesses a risk and decides whether and on what terms to insure it.