Large-scale biodiesel fraud back into focus at ILT

Once again, a company suspected of marketing biodiesel with forged certificates is in the picture at the Human Environment and Transport Inspectorate (ILT). Due to large-scale fraud, diesel that is not produced sustainably at all is registered as a sustainable fuel. This provides the fraudsters with great financial gain. But it also ensures that the Netherlands is working on achieving environmental objectives when in reality there is no emission reduction.

Search

On Tuesday 3 November, digital data carriers and the administration were seized during a search in the east of the country at a business location and in various residential houses. No arrests have been made. This is done in a new criminal investigation by the Intelligence and Investigation Service (IOD) of the ILT. The criminal investigation is led by the Functional Public Prosecutor’s Office of the Public Prosecution Service.

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A house and a barn on Erica were searched, this was done by the police, the ILT and the ILT / IOD. The Intelligence and Investigation Service of the Human Environment and Transport Inspectorate conducts criminal investigations and focuses mainly on (serious) organized crime, often involving international (financial) structures and trade flows.

Vehicles

About 18 vehicles were confiscated at the house on Erica. Among other things, very expensive sports cars, tractors and a dumper were removed by recovery company Koolen.

Certification still susceptible to fraud

In the spring of 2019, the ILT also revealed fraud with the certification of sustainable biodiesel. Research showed that in 2015, 38% of the declared CO2 emission reduction was actually not achieved at all due to forged Proof of Sustainability certificates. In 2016 this percentage was 27%. The ILT then sent the Biodiesel Signal Report to State Secretary Van Veldhoven. The current investigation makes it clear that cheating with biodiesel certificates still seems possible.

European environmental goals under pressure

The Netherlands participates in strict European agreements to use more and more sustainable fuel. Biodiesel made from used cooking oil, for example, causes significantly lower CO2 emissions than regular diesel. Biodiesel producers may issue a Proof of Sustainability (PoS) certificate for a batch of biodiesel that actually consists of sustainable raw materials. They have this registered with the Dutch Emissions Authority (NEa). The ‘Register of Energy for Transport’ thus specifies how many Renewable Fuel Units (HBEs) will come onto the market. This shows whether the environmental objectives are being achieved. If so-called sustainable biodiesel turns out not to be sustainable at all due to fraud, the Netherlands will not actually achieve the emission reduction on paper at all. The figures provided by the Netherlands are then incorrect and the (European) targets are not achieved.