Locator: 48757GERMANY.
The German cabinet has approved reforms that will restrict oil companies from carrying excess emissions reduction credits forward, a move that will boost the country’s biofuel industry which has been impacted by a rapid drop in carbon prices in recent years.
In recent years, oil companies operating in Germany have met emissions goals by selling extra biodiesel; with sales clocking in at 3.4 million metric tons in 2022, 34% above their target. However, the reforms mean that oil companies will no longer be able to use past greenhouse gas reduction quotas to meet targets in the coming two years, with this option only reopening again in 2027.
Back in September, Germany's Environment Agency rejected carbon credits for 215,000 tons of CO2 emissions from oil companies due to suspected fraud involving climate projects in China.
Companies usually meet these targets by using plant-based biofuels or through "upstream emission reduction" (UER) projects. However, concerns arose over a year ago when doubts arose about whether some of these projects met the required standards or even existed.
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