EU promises jail time for D&Os of polluting companies 

The European Parliament (EP) and Council negotiators have reached a provisional agreement on an update of EU environmental crimes and sanctions rules to strengthen ecosystem protection and try to tackle this fast-rising problem.

Directors and officers of companies found guilty of such crimes could face prison sentences up to ten years.

Environmental crime is the fourth-largest criminal activity in the world and is considered one of the main sources of income for organised crime alongside drugs, weapons and human trafficking.

It is growing at a rate of between 5% and 7% per year, according to a recent Interpol and UN Environment Programme estimate.

The EP explained that the new rules provide an updated list of acts related to the environment that qualify as criminal offences at EU level and of the related sanctions, to ensure a more effective enforcement of EU environmental legislation.

The list will include, among other offences, the import and use of mercury and fluorinated greenhouse gases, the import of invasive species, the illegal depletion of water resources, and pollution caused by ships. Parliament and Council negotiators also agreed on stricter sanctions for so-called qualified offences, i.e. those causing the destruction of an ecosystem or habitat within a protected site, or damage to air, soil or water quality.

These would include offences comparable to ecocide with catastrophic results, such as widespread pollution or large-scale forest fires.

“Individuals, including company representatives, committing environmental offences leading to death can be sentenced to imprisonment for ten years,” said the EP.

Qualified offences would be punishable by eight years in prison, while for other criminal offences, depending on factors such as the durability, severity or reversibility of the damage, the punishment would be a five-year prison sentence, it added.

Offenders may also face other sanctions, such as fines, and an obligation to reinstate the damaged environment or compensate for the damage caused. The same sanctions may be expected for companies, as alongside others like the withdrawal of licences, bans on access to public funding, or closure.

Following transposition, when it comes to fines, member states will be able to choose between levying them at 3% or 5% of yearly worldwide turnover, depending on the nature of the crime, or to choose fixed amounts of either €24m or €40m.

MEPs moved to protect whistleblowers. Persons reporting offences will be provided with support. Judges, prosecutors, police and other judicial staff will undergo specialised regular training, and member states will organise awareness-raising campaigns to reduce environmental crime. They can also establish a fund to support prevention measures and tackle the consequences of environmental offences.

Member states will also be required to prepare national strategies on combatting environmental crime and collect related statistical data, while the European Commission will have to regularly update the list of criminal offences.

Following the agreement, EP rapporteur Antonius Manders said: “We successfully negotiated a zero-tolerance position on environmental crimes that have huge consequences for human health and the environment. It is crucial that we fight these cross-border crimes at EU level with harmonised, dissuasive, and effective sanctions to prevent new environmental crimes. Prevention is key, and that is why we highlighted the need for more resources, research, training and awareness-raising campaigns targeting both the public and private sector. There is no more hiding behind permits or legislative loopholes: this law is future-proof, meaning that the list of offences will be kept up to date. If you pollute, you will pay for your crimes; not only criminal companies paying fines, but also jail time for representatives of polluting companies.”

Virginijus Sinkevičius, commissioner for Environment, Oceans and Fisheries, added: “Environmental crime causes devastating damage to our environment, harms our health as well as our economy. For too long, criminals have profited from weak sanctions and lack of enforcement. With this strengthened law, the EU steps up its action. It will better ensure that the most severe breaches of environmental rules are considered as crimes, that enforcers are more effective on the ground, and that environmental defenders are more protected and acknowledged.”

The agreed draft law requires formal approval by the legal affairs committee and the EP as a whole, as well as by the Council, before it can enter into force.