ENVIRONMENTAL CRIME A threat to our future ACKNOWLEDGEMENTS CONTENTS This report was written by Debbie Banks, Charlotte Davies, Justin Gosling, Julian Newman, Mary Rice, Jago Wadley and Fionnuala Walravens. 1 INTRODUCTION Picture research by Ingvild Holm Edited by Mary Rice 2 ENVIRONMENTAL CRIME MATTERS EIA would like to express their gratitude to the Rufford Maurice Laing Foundation and CASE STUDIES: Sigrid Rausing Trust for their continued support. Designed by: 6 ILLEGAL LOGGING – PILLAGING THE WORLD’S www.design-solutions.me.uk Tel: 07789 041173 SHRINKING RAINFORESTS Many thanks to Emmerson Press for the printing of this report. (Emmerson Press: +44 (0) 1926 854400) 10 WILDLIFE CRIME - SKINNING THE CAT Printed on recycled paper October 2008 14 SMUGGLING OF OZONE-DEPLETING SUBSTANCES – A CRIME AGAINST NATURE ISBN: 0-9540768-5-0 Front cover images © iStock 18 IVORY – THE SINGAPORE SEIZURE 22 SUCCESSFUL ENFORCEMENT MODELS 24 WHAT NEEDS TO BE DONE? 24 RECOMMENDATIONS WHAT IS INTERNATIONAL ENVIRONMENTAL CRIME? ENVIRONMENTAL INVESTIGATION AGENCY (EIA) 62/63 Upper Street, London N1 0NY, UK For the purposes of this report, International Environmental Tel: +44 (0) 20 7354 7960 Crime can be defined across five broad areas of offences Fax: +44 (0) 20 7354 7961 which have been recognised by bodies such as the G8, Interpol, email: [email protected] EU, UN Environment programme and the UN Interregional www.eia-international.org Crime and Justice Research Institute. These are: 1. Illegal trade in wildlife in contravention to the 1973 Washington Convention on International Trade in Endangered Species of fauna and Flora (CITES); 2. Illegal trade in ozone-depleting substances (ODS) in contravention to the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer; 3. Dumping and illegal transport of various kinds of hazardous waste in contravention of the 1989 Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and Other Wastes and their Disposal; 4. Illegal, unregulated and unreported (IUU) fishing in contravention to controls imposed by various regional fisheries management organisations (RMFOs); 5. Illegal logging and trade in timber when timber is harvested, transported, bought or sold in violation of national laws (There are currently no binding international controls on the international timber trade with the exception of an endangered species, which is covered by CITES). INTRODUCTION © iStock Since its inception in 1984 the syndicates, which have been diversifying Environmental Investigation Agency has their operations into new areas like been exposing environmental crime around counterfeiting and environmental crime. the globe and has sought greater political support for strong enforcement action Environmental crimes by their very against these crimes. Yet despite the fact nature are trans-boundary and involve that environmental crime poses a growing cross-border criminal syndicates. A tiger threat, it remains a low priority for the skin or an ivory tusk passes through many international enforcement community. hands from the poaching site to the final This report shows the scale and impacts buyer. A tree felled illegally can travel of environmental crime and calls for around the world from the forest via the strong political will to tackle it as a factory to be sold on the market as a matter of urgency. finished wood product. In the era of global free trade, the ease of communication and Environmental crimes can be broadly movement of goods and money facilitate defined as illegal acts which directly harm the operations of groups involved in the environment. They include: illegal environmental crime. trade in wildlife; smuggling of ozone- depleting substances (ODS); illicit trade in hazardous waste; illegal, unregulated, and “Illicit trade has broken the unreported fishing; and illegal logging and boundary and surged into our own the associated trade in stolen timber. lives…. For traffickers, that spells triumph. A triumph that takes the Perceived as ‘victimless’ and low on the priority list, such crimes often fail to form of unfathomable profits and prompt the required response from unprecedented political influence” governments and the enforcement community. In reality, the impacts affect Illicit: How smugglers, traffickers and all of society. For example, illegal logging copycats are hijacking the global economy - contributes to deforestation. It deprives Moisés Naím forest communities of vital livelihoods, causes ecological problems like flooding, and is a major contributor to climate The development of statutory enforcement change – up to one-fifth of greenhouse gas agencies has struggled to keep pace with emissions stem from deforestation. Illicit such change, and issues such as jurisdiction trade in ODS like the refrigerant chemicals restrict efforts to foster better cross-border chlorofluorocarbons (CFCs), contributes to cooperation against crimes like illegal a thinning ozone layer, which causes logging. These factors lead to a situation human health problems like skin cancer where environmental crimes offer high and cataracts. profits and minimal risk. Environmental crime generates tens of It is time for the international community billions of dollars in profits for criminal to wake-up to the menace of environmental enterprises every year, and it is growing. crime and show the necessary political will In part, this is due to the proliferation of to tackle the criminal gangs plundering international and regional environmental our planet for a quick profit. agreements, leading to more controls on a range of commodities. It is also due to Environmental Investigation Agency mutations in the operations of criminal October 2008 1 impunity, murder and violence the tools of their trade. ENVIRONMENTAL The indicators of environmental crime are evident in many areas of international development activities. Significant global CRIME MATTERS threats, including the challenges addressed through the Millennium Development Goals (MDGs) are connected to, and exacerbated by, environmental crime, “affecting development, peace, security and human rights”.1 These issues, some of which have been on the table for many years, are slowly starting to be addressed and only now are enforcement agencies worldwide beginning to recognise the role of organised criminal networks in environmental crime. Increasingly, illegal logging and wildlife trafficking are driven by organised groups who exploit natural resources and destroy habitats: robbing communities of their livelihoods, compromising the wider economy and further endangering threatened species and ecosystems. ENVIRONMENTAL CRIME IS SERIOUS, TRANSNATIONAL AND ORGANISED Environmental crime is currently one of the most profitable forms of criminal activity and it is no surprise that organised criminal groups are attracted to its high profit margins. Estimating the scale of environmental crime is problematic but Interpol estimates that global wildlife crime is worth billions of dollars a year; the World Bank states that illegal logging costs developing countries $15 billion in lost revenue and taxes. In the mid-1990s around 38,000 tonnes of CFCs were traded illegally every year – equivalent to 20 per cent of global trade in CFCs and worth $500 million; and in 2006 up to 14,000 tonnes of CFCs were smuggled into developing countries. © Hargun/Telapak/EIA The ‘raw materials’ which live or grow ABOVE: Environmental crime is at least as freely can be harvested or poached at Future generations like serious as any other crime affecting minimal cost. Organised criminals are these children in Sisir Village, society today. In contravention of adaptable and resourceful; they thrive West Papua, are at risk from numerous international treaties, the in conditions where others would fail. the destruction of their principal motive for environmental crime By definition, they build networks and natural environment. is, with rare exception, financial gain cast their nets wide to avoid detection. and its characteristics are all too familiar: With the collusion of corrupt officials, organised networks, porous borders, certification, concealment and irregular migration, money laundering, transportation are easily facilitated. corruption and the exploitation of With this combination of huge profits, disadvantaged communities. Wildlife low risk of detection and ineffective felons are just as ruthless as any other, penalties, environmental crime is with intimidation, human rights abuses, extremely lucrative. 2 money laundering enforcement has A CATALYST resulted in improvements in systems to “Compliance is part of FOR CORRUPTION alert authorities to suspicious transactions, good governance. It’s focusing particularly on terrorism-related part of having a rule of In the same way that criminals perceive offences. But in a ‘cash economy’ such law, having an effective as environmental crime, alternative environmental crime as an easy option, rule of law. Without so individuals in corporate or official investigation techniques are needed in positions of authority and power view order to combat sophisticated criminals that, you cannot have environmental crime as a chance to cash and prevent them from realising the sustainable development” in. Examples of this can be found in the proceeds of their crime, estimated to be 4 case studies of this report: signing and worth billions of dollars each year. Wangari Maathai, Nobel Peace forging import and export certificates; Laureate’s remarks