By Sage Melcer and Simon Zadek.

A new report published today from Finance for Biodiversity (F4B) points to how to break the environmentally-destructive connection between environmental crimes and legitimate investments. F4B calls on the global financial community, working with regulators and civil society organisations, to take steps to ensure the entire financing value chain is free of environmental crimes.

Environment crime, such as illegal wildlife trade and logging, is now one of the most profitable global criminal enterprises, generating up to almost USD300 billion in criminal gains each year, and creating even more profound damage and cost to the environment and society. Many entirely legal enterprises benefit from such environmental crimes, as do those who finance them.

The report highlights the opportunity to reduce environmental crimes by widening the scope and interpretation of existing Anti-Money Laundering (AML) rules. Pointing to the limits of such an approach, however, the report highlights the need to go further, and proposes a way forward paralleling anti-slavery and conflict diamond approaches. Finally, it encourages the financial community to take leadership in advancing widely adopted and effective voluntary measures to ensuring environmental crime-free financing value chains, and points to first-mover advantages in avoiding likely reputation damage, litigation, and poorly-designed legislation.

The report is an invited contribution to the UK Government-sponsored Global Resource Initiative (GRI), a multi-sectoral taskforce mandated to provide recommendations on greening the UK’s international supply chain footprint. Its recommendations are, however, internationally applicable.

Finance for Diversity, 2022. 17p,

By Tomomi Kitade, Masayuki Sakamoto, Chris Madden Hof

Japan customs records reported 564 kg of hawksbill tortoiseshell seized in 71 incidents between 2000 and 2019, representing some 530 Hawksbill Turtles. Over half was seized between 2015 and 2019 alone. The Hawksbill Turtle is listed as “Critically Endangered” in the IUCN Red List. In recent years, the major source region appears to have shifted from Southeast Asia to the Caribbean. The report highlights the current marine turtle trade situation in Japan, including the trends in illegal commodity imports —hawksbill tortoiseshell, in particular—and an analysis of manufacturers’ stockpiles, domestic regulations, and online trade.

Tokyo: World Wildlife Fund for Japan, 2021. 16p.

By Sandra Charity and Juliana Machado Ferreira

Brazil is home to 60% of the Amazon biome and holds the planet’s largest biodiversity treasure trove, with over 13% of the world’s animal and plant life. Turtles, fish, jaguars, frogs, insects, primates, songbirds, and parrots are among a long list of wildlife in Brazil that is illegally targeted for domestic and international trade. According to the report’s analysis of trafficking in the Amazon region, river turtles, ornamental fish, fish for consumption, and wild meat appeared most frequently in seizure open data between 2012–2019.

Cambridge, UK: TRAFFIC, 2020. 140p.

By Saket Badolaand and Astha Gautam

TRAFFIC’s “HIGH FLYING: Insight into wildlife trafficking through India's airports” analysis found the trafficking of over 70,000 native and exotic wild animals, including their body parts or derivatives (weighing around 4000kg) in 140 wildlife seizure incidents at 18 Indian airports between 2011-2020. Many of the seized species are categorised as threatened on the IUCN Red List and listed in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Appendices, regulating its trade to protect the species from decline.

One example, the Indian Star Tortoise, is listed as Vulnerable on the IUCN Red List. However, traffickers clearly disregard the threatened status and international CITES rules in Appendix I prohibiting its trade as the Indian Star Tortoise was the highest number of native species seized between 2011-2020. Among the species groups seized (including both Indian and exotic species), reptiles were the most encountered group during the study period (46%), followed by mammals (18%), timber (13%), and species from the marine environment (10%).

The highest number of native species seized included the Indian Star Tortoise, followed by the Black Pond Turtle Geoclemys hamiltonii.

The highest number of non-native species seized, Red-Eared Slider Turtle, followed by the Chinese Pond Turtle Mauremys reevesii.

Chennai International Airport, Tamil Nadu, recorded the highest number of wildlife seizure incidents, followed by Chhatrapati Shivaji International Airport, Mumbai and Indira Gandhi Airport New Delhi. The study's findings reflect the ongoing trafficking and not an actual representation as most of the illegal wildlife trade goes unchecked and unreported.

Godalming, UK: Traffic, 2022. 12p.

By Jason Lowther, Dee Cook and Martin Roberts

The attitude of the UK's legal system towards the ever-increasing illegal wildlife trade is inconsistent. It does not adequately reflect the nature and impact of the crimes, and it is erratic in its response. The result is that the courts perceive wildlife crime as low priority, even though it is on the increase.

Godalming, UK: Traffic, 2002. 42p.

By Environmental Incentives, LLC, Foundations of Success, and ICF International

Killing protected or managed species and the illegal trade in wildlife and their related parts and products (hereafter called “wildlife crime”) are among the most severe threats to global biodiversity. Hundreds of millions of individual animals belonging to hundreds of species are the targets of illegal harvesting and trade. Wildlife crime not only threatens the survival of focal species, but may also significantly alter ecosystem function and stability when one or more species are substantially depleted or even made locally extinct. High-value wildlife products are often trafficked by organized criminal syndicates and are known to finance violent non-state actors including terrorist groups. Armed conflict can exacerbate wildlife killing and trafficking, and trafficking is frequently associated with other crimes such as money laundering (Loucks et al. 2008, UNODC 2012). Wildlife criminals create insecurity in rural communities and kill park rangers, hurting morale and recruitment of park staff and reducing tourism and associated revenue needed for conservation and community development. For developing countries, loss of revenue from trade, taxes, and/or tourism can be significant and particularly damaging (Rosen & Smith 2010). The illegal trade in wildlife can also introduce and/or spread pathogens (Gómez & Aguirre 2008), posing major risks to human and livestock health, with implications for food security, commerce, and labor productivity (i.e., Ebola virus outbreak). Despite focused efforts often lasting several decades, wildlife crime remains a global threat (Broad & Damania 2010, Sharma et al. 2014). The importance of wildlife crime as a threat to conservation and development has attracted the attention of governments, non-governmental organizations (NGOs), research institutions, and multilateral organizations globally. Strategies to combat wildlife crime depend on accurate and reliable knowledge,

Washington, DC: United States Agency for International Development, 2017. 76p.

By Charles Victor Barber, Karen Winfield, and Rachael Petersen

The Climate and Land Use Alliance (CLUA), with the support of Meridian Institute, is exploring the integration of climate and land use with justice, equity, health, and economic recovery through Climate and Forests 2030: Resources for Funders. This focus is intended to inspire innovation and investment in integrated work on forests, rights, and sustainable land use and will inform a new strategic plan for CLUA for the period 2021 to 2030. To inform the thinking, CLUA commissioned a series of “thought pieces” to provide diverse inputs into developing a more integrated approach for forests and land use. These are meant to stimulate discussion and debate

Nature crime occurs when individuals or criminal networks illegally exploit natural ecosystems to extract natural resources. Nature crimes include illegal logging, illegal mining, illegal fishing, illegal wildlife trade, and the illegal conversion of forests and wetlands for agriculture or other uses. These crimes are often associated with financial crime of various types, as well as labor and human violations and official corruption. The prevalence of nature crime and associated corruption and criminal behavior constitutes a serious barrier to progress in tackling climate change, slowing biodiversity loss, reducing the risk of future zoonotic pandemics, and achieving sustainable, peaceful, and equitable human development. The scale of the nature crime economy is immense. It is variably estimated to be the third- or fourth-largest illicit economy in the world (after drug trafficking and trade in counterfeit goods) with an annual value of as much as $281 billion, but this figure underestimates its indirect impacts: governments are deprived annually of some $7-12 billion in timber and fisheries revenues, while the indirect costs of undermining ecosystem services may be as high as $1-2 trillion per year,

San Francisco?:Climate and Forests 2030, 2021. 30p.

By Mark Burnett, Natalia Dronova, Maren Esmark, Steve Nelson, Asle Rønning, and Vassily Spiridonov

The high northern latitudes support rich biological diversity, including expansive fish stocks, large colonies of seabirds, benthic communities, and a wide variety of marine mammals. Arctic biodiversity and biological productivity is of great international economic importance. About 70 per cent of the world’s total white fish supply comes from arctic waters. This marine resource is also extremely significant to arctic regional and coastal communities. Illegal fishing for Atlantic cod and Alaska pollock in the Arctic threatens the health of these globally important fisheries and their resilience to climate change. It undermines all efforts to build sustainable fisheries management regimes – a pressing objective in the Arctic, where temperatures are rising at twice the global average. Extensive data for the Barents Sea contrasts with the limited information available about estimated illegal fishing in the Russian Far East. As well as providing alarming illustrations of how widespread IUU fishing can become when adequate measures are not taken, the Arctic also gives encouraging examples of how IUU fishing can be greatly reduced. In the Barents Sea region, Norway and Russia have cooperated on fisheries management for several decades. Experience working together has resulted in concrete measures to control, regulate and monitor fishing. These measures have borne fruit recently with the reduction in illegal fishing in the Barents Sea. This achievement shows how coordinated efforts among governments, industry and non-governmental organisations can make a real difference in stopping criminal fishing activities. The current challenge is to keep up the momentum, learn from positive experiences, and leverage our commitment and knowledge to expand the fight against illegal fishing.

Oslo, Norway: World Wildlife Fund, International Arctic Programme, 2008. 52p

Edited by Christian Nellemann

This report Green Carbon, Black Trade by UNEP and INTERPOL focuses on illegal logging and its impacts on the lives and livelihoods of often some of the poorest people in the world set aside the environmental damage. It underlines how criminals are combining old fashioned methods such as bribes with high tech methods such as computer hacking of government web sites to obtain transportation and other permits. The report spotlights the increasingly sophisticated tactics being deployed to launder illegal logs through a web of palm oil plantations, road networks and saw mills.

Nairobi, Kenya: Arendal, Norway: United Nations Environment Program, GRID-Arendal.; 2012. 72p.

By Dave Currey, Faith Doherty, Sam Lawson, Julian Newman, and A. Ruwindrijarto

A report into illegal logging in Indonesia and South-East Asia, and the international consumption of illegally sourced timber. For the past two decades, the international community has been aware of rampant logging of tropical forests and vanishing biodiversity. Yet even if you could track an illegally cut tree to a port in a timber consuming country, and supply conclusive evidence that it was illegally cut, none of them have legislation in place that would allow their enforcement authorities to seize the shipment.

London; Washington, Environment Protection Agency; Bogor, Indonesia: Telapak, 2001. 36p.

By The Environmental Protection Agency

EIA’s first Forests report, arising from investigations conducted jointly by ourselves and Indonesian partner NGO Telapak into illegal logging in Indonesia’s Tanjung Puting National Park.

In the remote and supposedly protected park in Kalimantan, we found previously pristine rainforest in a state of violent chaos, effectively under siege from logging gangs targeting valuable ramin trees – despite the fact that it was vital habitat for endangered orangutans.

We pieced together the evidence on the ground to discover who was behind the huge theft and found it pointed to illegal logging kingpin Abdul Rasyid and his company Tanjung Lingga.

London; Washington, Environmental Protection Agency; Bogor, Indonesia: Telapak, 1999. 44p.

By The Financial Action Task Force (FATF)

Environmental crime covers a wide range of activities, from illegal extraction and trade of forestry and minerals to illegal land clearance and waste trafficking. Actors involved in these crimes vary from large organized crime groups to multinational companies and individuals. Perpetrators of environmental crime rely on both the financial and non-financial sector to launder their proceeds. The ‘low risk, high reward’ nature of environmental crime makes for a lucrative and safe source of revenue for criminals. This is partly due to a regulatory and legal environment that is not always consistent globally and does not fully address the financial aspects and money laundering (ML) risks of these crimes. The FATF conducted this study to strengthen awareness of the scale and nature of criminal gains and laundering techniques for environmental crimes. This study builds on the FATF’s 2020 report on financial flows from the illegal wildlife trade. It brings together expertise from across the FATF’s Global Network to identify good practices that governments and the private sector can take to disrupt the profitability of environmental crimes. The findings for this report are based on case studies and good practices provided by over 40 countries, alongside expertise from civil society and the private sector.

Paris: FATF, 2021. 70p.

By Environmental Investigation Agency

One of the poorest countries in Latin America, Honduras is losing up to $18 million a year in lost stumpage fees and other forest-based revenue. Yet this is only the tip of the iceberg of a massive, nationwide, resource rip-off by major timber and wood product producers and their high level political backers. An estimated 80% of mahogany and up to 50% of pine — Honduras’ main timber export — is produced in violation of government regulations.

Washington, DC: Environmental Investigation Agency, 2005. 48p.

By Saskia Ozinga and Janet Meissner Pritchard

This report explores how trade in agricultural commodities undermines important EU timber trade reforms. It recommends a course of action that extends Forest Law Enforcement Governance and Trade-like mechanisms to agricultural commodities, including clearly incorporating conversion timber in new Voluntary Partnership Agreements and developing a broader EU Action Plan on Deforestation and Forest Degadation.

Brussels: FERN, 2015. 20p.

By Judith Neyer and Jade Saunders

Exporting Destruction is the conclusion of research that included fieldwork in China, desk studies, and a new financial review, all commissioned to shine a light on the role that export credit agencies (ECAs) play in financing global deforestation. Through detailed case studies and historical research, FERN has been able to produce a set of policy recommendations that would, if implemented effectively, bring export credits in line with other publicly-funded institutions and reduce their potential for negative social and environmental impacts. The paper suggests that while the primary, if not sole, remit of ECAs is to promote their country’s domestic industries in competitive and risky environments, particularly in poor emerging markets, the huge amounts of money involved mean that they also have an important effect on policies and actions in the countries in which they support projects. To put their size in context, ECAs underwrite around US$100 billion annually in medium and long-term credits and guarantees, compared with, for example, multilateral development banks, which have a combined total of US$60 billion in loans per year.

Brussels: FERN, 2008. 41p.

By FERN

At a time when the space for civil society is shrinking, the need for people to be able to influence the powers that control their lives, and have the freedom to work together to tackle the challenges they face, is more critical than ever. These reports from the frontline of the struggle against deforestation and illegal logging show how it can be done. Written by local journalists from tropical forested countries which have signed (or are negotiating) Voluntary Partnership Agreement (VPA) timber trade deals with the European Union (EU), these stories offer snapshots of the lives of people dependent on forests for their survival, and underline how putting local people in the driving seat of the policies that affect them is key to keeping forests standing.

Brussels; London: FERN, 2002. 40p.

By Duncan Brack, Chantal Marijnissen, and Saskia Ozinga

Around the world, people are waking up to the fact that illegal forestry activities are widespread and have extremely negative consequences. Not only does illegal logging damage the environment, but tax evasion by forestry companies deprives governments of billions of euros in revenues, related corruption and impunity to prosecution undermine the rule of law, and in several countries the proceeds from illegal forestry activities have financed violent conflict. Clearly something must be done. In this paper several of Europe’s most knowledgeable experts about illegal forestry activities have put their heads together to examine what the European Commission and member states can do to address the problem. They focus particularly on trade, finance, and procurement issues, although they briefly discuss efforts to strengthen the capacity of national institutions in developing countries. One by one they go through each of the specific instruments that might be used and analyse their advantages and disadvantages and the practical aspects of their application. They conclude that steps can be taken by using existing legislation and mechanisms if the Commission and member states vigorously pursue those options, but additional legislation is needed.

Brussels; FERN: London: Royal Institute of International Affairs , 2002. 74p.

By Victoria Dittmar and Parker Asmann

The expansion of illegal cattle ranching is threatening nature reserves in Nicaragua, Honduras and Guatemala. This activity provokes staggering levels of deforestation, irreversible environmental degradation and violence towards Indigenous communities, all while fueling a criminal market that generates millions of dollars in proceeds. A portion of these cattle are smuggled into Mexico, where they either feed the domestic demand for meat or are mixed with beef exports sent to the United States and other countries. This report, produced by InSight Crime, follows the cattle trafficking chain from Central America to Mexico and provides an overview of how this illicit market works. It estimates the size and scope of the industry, highlights illegal ranching hotspots and smuggling routes, identifies the main actors involved in the value chain, analyzes where and how this activity overlaps with other criminal economies, and offers recommendations for governments to tackle the issue. The findings are based on a 14-month investigation that included desktop research, telephone and in-person interviews, and fieldwork in the Mexican states of Veracruz, Tabasco, and Chiapas, the Río Plátano Reserve in Honduras and the Maya Biosphere Reserve in Guatemala. Our sources include international, national and local authorities, cattle ranchers and cattle union leaders, former contraband cattle buyers, veterinarians, Indigenous leaders, park rangers, residents of the nature reserves, environmental activists and academic experts. Most of them asked to remain anonymous for their protection. We also reviewed official government data, studies conducted by academics nd non-governmental organizations, and press reports.

Washington, DC: InSight Crime, 2022. 68p.

By North Atlantic Fisheries Intelligence Group and INTERPOL

Secrecy, or the ability to keep one's identity hidden behind a corporate veil, is a key facilitator of fisheries crime, including tax crime and other ancillary crimes in the fisheries sector. Secrecy means that investigators “don’t know what they don’t know” and is a fundamental challenge to fisheries crime law enforcement. The focus of this report is the jurisdictions that facilitate secrecy in fisheries, the flags of convenience, and particularly those that are contracted out to private companies, the so-called private flags, and the impact flags of convenience and secrecy has on effective fisheries crime law enforcement.

NA-FIG, INTERPOL, the Nordic Council of Ministers and Norad 2017. 76p.

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By Sjarief Widjaja, Tony Long and Hassan Wirajuda

By looking at the breadth of areas in need of reform, this Blue Paper lays out a methodology for addressing IUU fishing, including best practices for implementing the Port State Measures Agreement and other means to prevent IUU fishing catches from entering the market. It also discusses ways to promote technologies for combating IUU fishing, strategies for transitioning IUU fishing fleets, and the role of regional and international partnerships.

Washington, DC: World Resources Institute, 2020. 60p.