Investigating Emissions Fraud in Bulgaria
Caroline Henshaw �Environment Editor, OCCRP
What is OCCRP?
• OCCRP is a global network of investigative journalists dedicated to exposing organized crime and corruption
• We work with Transparency International under the Global Anti-Corruption Consortium (GACC) to ensure our work has impact
• Our investigations have led to more than $10 billion of assets being seized and over 650 arrests
• Our environmental work covers everything from wildlife trafficking and illegal mining to biofuels fraud and corruption in sustainable investments
The Investigation
• By Eleonora Vio and Daniela Sala, with help from Demetra Andonova and Dimitar Stoyanov
• Exposed how two Bulgarian power plants defrauded the EU’s Emissions Trading System (ETS)
• The ETS is the world’s largest carbon trading market — this story showed how easily it can be fooled
CREDIT: Daniela Sala
The Analysis
• Power plants calculate how much CO2 they produce each year using an “emissions factor,” reflecting how carbon-intensive the fuel they burn is
• Bobov Dol burned sub-bituminous coal (96.1) and lignite (104.2) but reported an emissions factor under 80
• Brikel burned only lignite, but reported emissions factors far below 104.2 for all three years
• Reporters used the annual average EU carbon price to estimate how much the power plants saved
The Findings
• Focused on two power plants: Bobov Dol and Brikel
• Both are controlled by notorious Bulgarian energy magnate Hristo Kovachki
• Analysed public annual emissions data reported under the ETS between 2018 and 2020
• This saved them between €26.6M and €32.2M in taxes
• The company that certified the data was run by a 27-year-old with no career history
The Enabler
• Just before starting to under-report emissions, Bobov Dol and Brikel hired GMI Verify
• So did at least 10 other plants Kovachki is thought to own
• Public UBO data showed GMI Verify was established in 2018 by a 27-year-old. OSINT showed she had no job history
• GMI Verify was located in the same building as one of Kovachki’s insurance companies
• Ironically, confirming the most widely known part of the story — that Kovachki controls the plants — was the hardest part
Impact
and Future Stories
• In March, Bulgarian police raided dozens of properties over an investigation into a fraudulent emissions certifier
• The EPPO said the company is suspected of verifying fraudulent data from power plants, saving them millions of euros
• Story is on our website and also the topic of the latest podcast by Europe Climate Brief
• I’d love to hear from anyone who wants to replicate this!
Impact
and Future Stories
• in xxx, the EPPO launched an investigation
Raided xxx
Tried to duplicate this elsewghre but couldn’t find comparable data
I’d love to hear from anyone who can replicate this!
CREDIT: Daniela Sala