How Financial Crime Fuels Climate Change and Biodiversity Loss

Nature crimes such as illegal gold mining, logging, and fishing are not only accelerating climate change and biodiversity loss—they are also deeply entwined with financial crimes. These activities undermine global environmental efforts and often involve transnational criminal networks.

A new article by the World Resources Institute (WRI) spotlights the alarming rise in nature crimes worldwide. Post-pandemic, illegal gold mining has surged in Venezuela and Ecuador. Illegal logging has driven deforestation on a massive scale—nearly 1.4 million hectares of forest were lost between 2001 and 2020.

Meanwhile, illegal fishing, linked to human rights abuses and organised crime, remains rampant in coastal regions, including Asia. In November 2024, the U.S. Treasury sanctioned members of the Gulf Cartel for crimes including illegal fishing and human smuggling.

How can we address global problems related to nature crimes? The World Resources Institute (WRI) outlines five key solutions:

Follow the Money

Nature crimes are often prosecuted more effectively through financial crime laws. The Financial Action Task Force (FATF) identifies illegal logging and mining as high-value crimes tied to money laundering. Efforts like the Amazon Region Initiative Against Illicit Finance aim to disrupt criminal funding networks behind these offences.

The Amazon Region Initiative Against Illicit Finance is a partnership between South American countries such as Brazil, Colombia, Ecuador, and the United States. Additionally, various initiatives from the private sector and cooperation from multinational organisations like the UN, the Nature Crime Alliance, Interpol, and charitable organisations are working to address both nature and financial crimes.

Leverage Emerging Technologies

Recent advancements in chemical analysis and genetic tracking have uncovered around 260 metric tons of Russian timber that illegally made its way into Belgium, in breach of EU sanctions imposed after Russia invaded Ukraine. Additionally, innovations such as AI-integrated camera traps are being utilised to apprehend poachers, while geospatial monitoring systems are proving invaluable in assisting law enforcement to tackle crimes on both land and sea.

Empower Frontline Communities

Supporting Indigenous peoples and local communities involves providing access to innovative tools that give them an advantage over criminal gangs. This assistance includes training on the effective use of monitoring systems like Global Forest Watch and similar platforms. Furthermore, establishing reliable relationships between indigenous communities and law enforcement can enhance the safety of individuals dedicated to protecting their homes and the environment.

Adopt Multi-Sector Solutions

Collaboration across multiple sectors is an effective strategy to combat environmental crimes. For example, cooperation among the Amazon Conservation Association (ACA), Indigenous peoples, local communities, and relevant government agencies has led to significant enforcement operations in Peru, successfully discouraging illegal deforestation linked to mining activities in the region.

Strengthen Legal Frameworks

Enhancing legal frameworks that align with current prosecutorial practices is essential to effectively addressing nature crimes. This includes updating legal procedures to allow for more evidence types, such as remote sensing data, which could lead to higher conviction rates. Additionally, reinforcing land rights for Indigenous peoples and local communities is crucial in combating land grabbing.

These strategies, backed by coordinated global efforts, can disrupt criminal systems that drive environmental destruction. The article also mentions upcoming summits and conferences that present opportunities to make significant progress in this area.