Significant tightening of environmental criminal law

Author: Laura Baumgartner-Viechtbauer

What companies need to know now

The EU is taking environmental criminal law to a new level. With Directive (EU) 2024/1203, the European legislator is sending a clear signal: Environmental violations will be prosecuted more effectively and punished more severely in the future. Companies should address the new risks at an early stage.

New EU directive: implementation by May 2026

The new directive on the protection of the environment through criminal law has been in force since May 2024 and must be transposed into Austrian law by May 21st, 2026. It replaces the previous directive from 2008 and responds to what the EU considers to be insufficient enforcement of environmental law. The aim is to establish a uniform minimum standard for the definition of environmental offenses and sanctions across the EU.

Who is affected by the directive?

In principle, all companies are affected, in particular with regard to environmentally relevant matters. These include construction and infrastructure companies, industrial and chemical enterprises, energy producers, waste management and transport companies, and companies with facilities requiring permits or with complex supply chains. In addition to substantial penalties for companies, managing directors, board members, and other decision-makers are also targeted, as personal criminal liability is being expanded.

What specifically will change?

The number of environmental criminal offences subject to mandatory penalties will increase significantly from nine to 20. In the future, criminal liability will arise already from the placing on the market of certain products or substances if this poses a threat of significant environmental damage. The scope of application covers, in particular, interference with air, soil, and water quality, violations in waste management, and risks associated with the construction, operation, or dismantling of environmentally relevant facilities. In many cases, gross negligence is sufficient – intent is not always required.

The new sanctions are particularly severe: Companies may face fines of up to 5% of their global annual turnover or amounts of up to EUR 40 million. In addition, secondary consequences may be imposed, such as exclusion from participation in tendering procedures, denial of subsidies and grants, withdrawal of permits and licenses, or even bans on activities.

Which steps should companies already take now?

Even though national implementation is still pending, there is a need for action:

Review of environmentally relevant processes and supply chains
Integration of environmental criminal law into compliance and risk management systems
Raising awareness among managers and executives

Conclusion

Environmental criminal law is becoming a key compliance risk with significant economic implications. Those who prepare now will not only reduce criminal liability risks, but also strengthen their position vis-à-vis authorities, business partners, and the market.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.