The EU Fuel Quality Directive has certain rules regarding fuel emissions and one of the options is to buy these Upstream Emission Certificates to show that the fuel was pumped out of the ground with relativly low emissions. Since EU oil production is low, this means production somewhere else has to be cleaner.
The smart move would be to ban those certificates and force them to use direct air capture or e-fuels instead.
In Pakistan the Lahore High Court was able to rule that the government was in violation of climate protection. So I guess rule of law is better in Pakistan then it is in the US.