In Germany, following the withdrawal of ADAC from the GHG quota trading business at the end of the 2024 allocation year, another company, EMOVY GmbH, has also exited the market by initiating insolvency proceedings. According to the Union for the Promotion of Oil and Protein Plants (UFOP), this bankruptcy — like previous ones in the emerging GHG quota sector — is a collateral consequence of a growing number of fraud cases. These include fraudulent imports of biodiesel and hydrotreated vegetable oil (HVO) from China, most recently in spring 2025, involving a fictitious HVO facility in Dubai.
Such fraudulent activities have had severe economic repercussions for the German and European biofuel value chains, especially concerning double counting in GHG quota fraud. UFOP noted that the drop in GHG quota prices to €80–90 per tonne of CO₂ reflects oversupply, which may even impact oilseed pricing. These distortions are driving export pressure and depressing biofuel prices. Despite the legal GHG quota rising from 8.0% in 2024 to 9.36%, the use of fossil diesel and fossil-bioblend mixes declined from 2.621 million to 2.065 million tonnes—mainly due to a high proportion of waste-based biofuels listed under RED II Annex IX Part A.
UFOP urges swift detection and prosecution of fraudulent activities and calls for stricter oversight of certification systems. This includes verifying plant registrations, auditing GHG calculations, and validating feedstock origins. A report by Germany’s BLE highlighted questionable emissions savings claims of over 130% from biodiesel made with “aglogies biomass” imported from Ethiopian mustard—a case that warrants further investigation.
