UFOP welcomes draft german law to tighten fraud prevention in biofuels

In Germany, UFOP welcomes the measures provided for in the draft law on the further development of the GHG reduction rate to tighten fraud prevention. This includes, in particular, the abolition of double credit and the requirement of on-the-spot control by the competent authority. If the confirmation of such an audit is lacking, or if an on-the-spot check confirms a suspicion of fraud, these biofuel quantities cannot be counted against the GHG quota obligation in accordance with the draft law. The associated sustainability proof is practically worthless.

UFOP expects quota-committed companies in the petroleum industry to examine their sources of supply even more closely than before due to the tightened requirements. These measures are not least a result of the refusal of Chinese biofuel producers to investigate a suspicion of fraud. UFOP expects a corresponding clean-up effect, which is also necessary to restore product confidence in the end customer and policymakers as a result of the suspected cases that have become known in the EU and third countries.

The need again confirms a recent suspicion of fraud in Malaysia with redeclared waste oil from palm oil. UFOP therefore welcomes the end of the end to the ending of biofuels from residues from palm oil production provided for in the law, because here the temptation is great and the control on the ground is difficult. The UFOP calls on the Federal Government to work for analogue regulations at EU level, because the member states are currently working on implementing the RED III. In this context, the UFOP is critical of the extension of Annex IX Part A and B of the RED II to include raw materials from the so-called intermediate crop cultivation. Because the corresponding EU regulation provides that the member states regulate the proof requirements. From the point of view of the UFOP, a patchwork of regulation threatens. In order to avoid circumvention, the support union, in the sense of EU-skilled fraud prevention, emphasizes the need for coordination among the member states.

The importance of fraud prevention makes UFOP aware of the development of the raw material composition for biodiesel and HVO. According to the Federal Institute for Agriculture and Food (BLE), a total of a good 3.6 million tons (Vj. 3.9 million tonnes of biofuels for crediting the GHG reduction obligation. Of that, approx. 2.075 million tonnes on this-replacement biofuels (biodiesel, HVO) with a share of 82% of biofuels from waste oils and fats.