One of the main sources of income for organised crime, environmental crime has been surging worldwide by between five and seven percent per year, according to EU data.
The European Union hopes that the stricter rules will deter would-be offenders, while harmonising penalties across the bloc -- increasing the number of environmental offences under EU criminal law from the current nine to 18.
Actions such as timber trafficking, illegal ship recycling, importing invasive species and wrongfully depleting water resources will now all be dealt with under criminal law.
The text also introduces "qualified offences", considered more serious because they involve the destruction of an ecosystem, such as major pollution or forest fires.
For many of the offences, companies can face fines of up to 40 million euros ($43 million), the withdrawal of licences, bans on access to public money -- or potentially be shut down.
Individuals, including company representatives, who commit environmental offences leading to death can face 10 year prison sentences.
Offenders can also be forced to repair or compensate for the damage they caused.
Negotiators from the parliament and the EU's 27 member states had reached a provisional agreement on the text in November last year.
Once EU states also adopt the text, it will formally become law.
"This directive is an ambitious instrument, which will have long-lasting effect on the ground by enhancing the legal framework for effectively tackling environmental crimes," the EU's internal market commissioner, Thierry Breton, said.
Breton said, during a debate in the European Parliament in Strasbourg on Monday, that the rules would enhance cooperation and coordination across the bloc.
"The new environmental crime directive will send a strong signal also beyond the EU."
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