Editorial: Beyond all boundaries the meteoric rise of environmental crime

Citation

Rippingille, B. (2023), "Editorial: Beyond all boundaries the meteoric rise of environmental crime", Journal of Financial Crime, Vol. 30 No. 5, pp. 1113-1116. https://doi.org/10.1108/JFC-10-2023-311

The meteoric rise of environmental crime across all global boundaries has for decades caused accelerating climate change, destruction of habitats and biodiversity loss demands far more attention by those responsible for protecting our societies and institutions against risks to their stability and, indeed, their very existence. Environmental crime is a serious economic crime which affects the global economy and therefore everyone of us.

What is environmental crime?

Environmental crime is understood to collectively describe illegal activities harming the environment and aimed at financially benefiting certain individuals, group or companies through the exploitation and theft of, or trade in natural resources. It is the third largest global crime sector, and the economic impact of environmental crime is rising at the meteoric rate of 5%–7% annually, which is two to three times the rate of growth for the global economy. Interpol and UNEP estimate that natural resources worth as much as US$91–281bn are stolen annually from the global economy.

The economic impact estimates for the specific categories of environmental crime are useful to an understanding of the significance of the major global environmental crimes:

• Forestry crime, the largest sector, has an impact of US$51–152bn annually.

• Illegal mining has an impact of US$12–48 bn annually.

• Illegal fisheries and poaching have an impact of US$11–24bn annually.

• Illegal wildlife trade has an impact of US$7–23bn annually.

• Illegal trafficking of toxic waste has an impact of US$10–12bn annually.

• Illegal exploitation and theft of oil has an impact of US$19–23bn annually.

The World Bank estimates that the true cost of environmental crime when including ecosystem losses is US$1–2tn annually.

Environmental crime will generally involve multiple other serious crimes which can be used either with an environmental crime or to prosecute environmental damage in the absence of a law. These crimes include tax evasion, money laundering and anti-money laundering, destruction of foreign property by fire, anti-bribery laws, wire and mail fraud, document fraud, carbon credits transfer fraud, counterfeiting, drugs and firearms trafficking, human trafficking and forced labor, hacking, maritime piracy and threat financing. A whopping 38% of all income from environmental crime goes to finance armed groups and conflict financing, which is primarily derived from theft of natural resources such as minerals, oil, timber, charcoal, marine resources, trafficking, slavery, illegal trade in hazardous waste, chemicals and wildlife.

In addition to the significant global economic impact of environmental crime, the impact to social and human rights caused by this crime sector has been devastating. Environmental crime is not a victimless crime, and it is recognized as a global threat to health, development, peace and security. It affects livelihoods and home and land ownership. Air quality degradation from fossil fuels emissions, illegal deforestation, forest degradation and desertification, cause changes to climate and biodiversity loss, which adversely affect human health and reduces sources of food supply and water and drives mass migration. It also significantly reduces the revenue and revenue sources of local economies (estimated at US$19–23bn annually) that could be used to sustain and improve health care, education, business development and infrastructure.

Demand is increasing for natural resources and the unfathomable profits to be gained from engaging in environmental crime. Environmental crime thrives on governmental corruption, bribery, counterfeiting of documents, the lack of administrative regulations and laws and the failure of local governments and states to enforce existing regulations strictly and consistently. Environmental crime is multijurisdictional and transnational so there is little or no uniformity in the laws and regulations between the countries through which the contraband is transported and/or shipped and a low risk of apprehension and conviction. Enforcement is difficult, and some behaviors which adversely impact the environment have not been criminalized.

Unfortunately, there is a low awareness of the scale and modi operandi of environmental crime by the public and governments. Attention to these crimes needs to be elevated and regulations for deterrence created through transnational cooperation with the global financial industry as well as governments, nongovernmental organizations (NGOs), academics and the public.

What can we do to arrest environmental crime?

NGOs working on combatting environmental crime should receive financial and other support from the government and the public as partners in investigations. The intensification of contacts between professionals and NGOs on the operational and strategic level will break down barriers that inhibit interagency cooperation. These contacts are enhancing cooperation on cross-jurisdictional investigations through exchange of information which increases the efficiency of environmental enforcement. They can provide the catalyst for direct action with the information they collect and disseminate. Some NGOs run advocacy campaigns which raise awareness and create support for legal action and operate training workshops for enforcement officials and those affected by environmental crime, a role that was useful in fighting the illegal trade and traffic of wild plants and animals and fighting deforestation. NGOs are also influencing the emergence of new enforcement and security structures that are driving cross-sector cooperation.

Investigative journalists play a key role in reporting on the issues and globally exposing the actions of the bad actors who plunder and reap the economic benefits of environmental crime whilst harming the environment and violating human rights. A prime example of this was the investigative report on blood diamonds, prepared by Global Witness, which served as a catalyst to global action on this issue.

Legal sanctions need to be increased as well as civil penalties by governments and judicial injunctive relief, compliance orders, cost recovery orders, increasing budgets for detection and enforcement and specialized training for enforcement officers. Sovereign states should be encouraged to create domestic criminal laws and regulations and provide the resources to enforce them.

Ecocide and international law

Ecocide, a purely environmental crime, is defined as unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage being done to the environment caused by those acts.

The developing campaign to recognize the crime of Ecocide, under international law, was begun in the 70s and was founded on the belief that the current international legal framework was inadequate to charge and incarcerate those who are proven to be causing or are contributing to a broader destructive system which causes global damage. They were correct as it has proven to be inadequate.

Efforts to recognize ecocide as a crime under the remit of the International Criminal Court (ICC) are now being led by the Stop Ecocide Foundation, an organization founded in 2019 that proposed to expand the Rome Statute to include the crime of Ecocide. The ICC’s jurisdiction is currently limited to the four “most serious crimes of concern to the international community” genocide, crimes against humanity, war crimes and the crime of aggression. Ecocide would be the fifth stand-alone crime.

The new proposal for Ecocide changes the legal framework by eliminating the need to prove intentionality among perpetrators, thus allowing cases of negligent environmental destruction to be prosecuted as ecocide. Ecocide is a purely environmental crime and does not require that there be some sort of damage to people or private or public property protected by law. It would allow individuals and companies in some jurisdictions to be prosecuted for engaging in acts with knowledge that they are substantially likely to cause severe and either widespread or long-term damage to the environment caused by those acts.

Momentum appears to be growing to make Ecocide an international crime, especially in view of the Russian destruction of the Ukrainian dam as a weapon of war, which caused devastating damage to farmland, people and wildlife, destabilizing ecosystems and jeopardizing nature reserves.

In March 2023, the European Parliament voted in support of Ecocide becoming EU law and shortly thereafter, the European Economic and Social Committee began an initiative on Ecocide.

Should Ecocide be an international crime?

Making Ecocide a crime expands international accountability for environmental harms by creating the opportunity to prosecute environmental damage beyond the context of war. It would enable individuals to be prosecuted for causing significant environmental harm such as burning large quantities of fossil fuel, cutting down climate critical forests, land and oil contamination, air pollution and ocean damage through oil spills. The crime of ecocide would extend to individuals at the top of industries, financial institutions and government who would face charges, not organizations or states. It should have a deterrent effect.

Making Ecocide an international crime would also legitimize and prioritize the need for urgent and transformative action and would be a catalyst for states to enact ecocide laws domestically. It will also provide a legal mechanism to bring to justice those who attack people protecting the environment, their land and homes. It would provide support to local officials and states and create an incentive for oversight and intervention.

There is a need for urgent action to arrest the damage being caused by the activities which cause substantial and significant environmental harm. The crises of climate change and biodiversity have deepened and without a binding legal framework created by recognizing an international crime of ecocide to prevent future substantial and significant environmental harm, strengthening laws and creating improved regulations and enforcement mechanisms, our future on this planet will not be secured.

Hon. Bonnie Rippingille-Schoedinger, M.A., J.D. former Judge, Dade Country, FL

U.S. Regional Director and Chair, Environmental Crime Programme

Cambridge International Symposium on Economic Crime