Upstream Emission Reductions

About current topics in the UER market

May 2024

As you may have heard, there have been rumors and press interest in UER projects in recent weeks, not least a TV report that also puts us in a bad light. At Verico SCE, we are generally committed to the highest possible quality standards, also because such standards are inevitably relevant to the implementation of many guidelines such as CBAM and ecologically relevant markets in general. This commitment to quality is the basis of our accredited business activities. The allegations of not having recognized or even accepted deception or forgery call into question the reputation of our company as a whole and we are
doing everything we can to clarify them. If the allegations prove to be correct, we see ourselves as the injured party and will pursue the facts using legal means.

However, the results of any investigative work can only be finally evaluated after it has been completed. We have therefore spent a lot of time and effort explaining to the media how

  • validation and verification should be carried out,
  • the associated rules on confidentiality of information should be taken into account,
  • project-related concerns should be assessed, and
  • we are in contact and cooperating with the Federal Environment Agency in the
    context of the investigations already underway for which it is responsible.

Unfortunately, there currently seems to be an orchestrated effort to influence processes and markets. In doing so, we find that issues are also taken out of context and presented incompletely. Although we generally like to go into detail, we will limit ourselves to general explanations here. If you have specific questions and concerns, please do not hesitate to contact us.

Validation and Verification

EU Directive 2015/652 establishing calculation methods and reporting requirements under Directive 98/70 / EC on the quality of petrol and diesel fuels creates incentives for greenhouse gas emission (GHG) emission reductions by introducing upstream emission reductions (UER) including but not limited to flaring and degassing, which may be included in the calculation of life cycle greenhouse gas emissions limited by the Directive.

“Upstream emissions” are all greenhouse gas emissions that occur before the raw material reaches a refinery or processing plant. UER from any country can be credited as greenhouse gas emissions reductions on any fuels of any supplier from any other source of raw materials. UER are determined and validated according to principles and standards contained in international standards, in particular ISO 14064, ISO 14065 and ISO 14066.

The monitoring, reporting and verification of UER and baseline emissions must be in accordance with ISO 14064. Verification of methods for determined UER must be in accordance with ISO 14064-3 and the verifier must be accredited to ISO 14065. EU member states are responsible for transposing the directive into national law, which may include other requirements. Specifically, the German Upstream Emission Reduction Ordinance (UERO) places particularly high demands here, which is reflected in a corresponding price for certificates from such registered and verified projects.

Verico SCE is accredited by DAkkS (German Accreditation Body) under ISO 14065 including specific reference to ISO 14064-2 (emission reduction projects) and registered by the German Emissions Trading Authority (DEHSt) as validator and verifier under UERO (Upstream Emission Reduction Ordinance). This allows us to validate project planning documents (PDD) and, if necessary, verifications of the achieved emission reductions according to the German UERO, as well as the equivalent regulations of most other EU member states. We see ourselves as the leading service provider with the largest number of references.

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