The provisional accord -- which has to be formally adopted at a later stage -- adds activities like timber trafficking, illegal ship recycling, the illicit use of mercury and wrongfully depleting water resources to a category that would be treated under criminal law.
It also contains "qualified offences" considered more serious because of destruction of an ecosystem in a protected area, or offences leading to disasters such as major pollution or forest fires.
Many crimes would be met with fines worth tens of millions of euros or even going up to five percent of a company's global turnover, orders to repair damage caused, and/or revoked licences.
More serious ones could include prison sentences.
"Environmental crime is one of the world's most profitable organised criminal activities and has a major impact not only on the environment but also on human health," the European Council said in a statement.
"It is highly lucrative, but it is hard to detect, prosecute and punish."
The agreed legislation would modify a 2008 EU law deemed ineffective.
The European Commission, which instigated the text subsequently negotiated, welcomed the deal.
"The new directive will improve the effectiveness of criminal law enforcement and help achieve European Green Deal objectives by fighting against the most serious environmental offences which can have devastating effects on both the environment and human health," it said.
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