The European Parliament, the Council of the EU, and the European Commission have reached a final agreement on the amended draft of the 'EU Environmental Crime Directive.' This amendment permits the imposition of custodial sentences on management for significant corporate environmental crimes.
The revised draft, introduced in December 2021 to penalize and prevent major environmental crimes by corporations, is set to take effect in February of the next year, following formal approval by the European Parliament and subsequently by the Council of the EU.
The amendment underscores the 'polluter pays' principle, seeking to prevent future environmental crimes by imposing robust criminal penalties on companies involved in significant environmental offenses.
Moreover, in instances of environmental pollution occurring concurrently in multiple member states, the directive coordinates responses and facilitates effective sanctions to avert environmental pollution.
For companies breaching the directive and causing fatal accidents, the representative could face a maximum prison sentence of 10 years. In cases of significant environmental pollution (Qualified Offence) not resulting in fatalities, the maximum prison sentence is 8 years, while for other offenses, it is a maximum of 5 years.
Additionally, companies may be fined up to 5% of their global annual revenue, with the option of imposing a fixed fine ranging from 2.4 to 4 million euros. However, member states can select the fine rate between 3-5% and can impose a fixed fine between 2.4 to 4 million euros.
While there may be some variability in the fine amounts among member states, the definition of environmental crimes under this directive, encompassing deforestation, marine pollution, and the production of goods through the illegal exploitation of natural resources, uniformly applies across the EU.
On a separate note, environmental advocacy groups have welcomed the incorporation of the concept of 'Ecocide,' marking the world's first acknowledgment of ecocide as one of the environmental crimes punishable under criminal law.
However, criticism has arisen concerning the exclusion of illegal, unreported, and unregulated fishing (IUU fishing) from the environmental crimes that the directive can penalize.
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