Directive (EU) 2015/652 provides for the possibility whereby so-called upstream emission reductions (UER) can also be offset against the greenhouse gas reduction targets specified in Directive 98/70/EC. The upstream emission reductions involve the reduction in greenhouse gas emissions which have arisen before the raw material finds its way to a refinery or processing plant where the fossil fuels have been produced.

The Ordinance serves to transpose the requirements under Directive (EU) 2015/652 concerning the offsetting of upstream emission reductions. Given the similarity in terms of content and the fact that the target audience is similar, the provisions are guided, where possible, by the Project Mechanisms Act of 22 September 2005 (Federal Law Gazette I p. 2826), last amended by Article 4(29) of the Act of 18 July 2016 (Federal Law Gazette I p. 1666), as well as by other procedures which are already laid down in connection with the greenhouse gas quota. Hence, the procedures already established can be capitalised on as far as possible and synergy effects can be utilised.