Definition and scope of the issue

Natural resources are key components of many economies with a growing share in world trade. Not surprisingly, they have become yet another source of income similar to narcotics, counterfeit products, weapons and antiques (WTO). Natural resources-related illegal trade involves the illicit trafficking of non-renewable resources such as fuels and minerals, and renewable ones: wildlife, forestry and fishery. The illegal trade of these resources is often identified by international organizations as ‘environmental crimes’ (UNEP INTERPOL; IISD). The concept not only involves these illegal practices but also the illicit trafficking of chemicals and hazardous waste  (WCO). The estimated annual value of illegal trade in resources is a minimum of USD 20 billion, however, the World Bank Group estimated a staggering USD 1 to 2 trillion dollars annual worth of illegal fishing, logging and wildlife trade in 2019 (World Bank). 

Drivers and main areas of natural-resource related illegal trade 

Uneven geographical distribution of resources means that some countries are dominated by resource production, while others have none. Consequently, trade in natural resources is particularly important for many producing countries whose exports are undiversified and for states who may have no local supply (Ruta-Venables, 2012). 

Environmental crimes are currently one of the most profitable forms of transnational criminal activities, covering approximately 25% of the total legal trade (IISD). Behind the formation of the environmental black market there are several drivers: the implementation of new multilateral environmental agreements which provide opportunities for evasion, the general trend towards trade liberalization, the increased regional economic integration, the growth of transnational corporations, minimal budgets to police, prosecution and courts, the inadequate institutional support and poverty (IISD). Environmental crimes encompass a broad list of illicit activities:

  • The highest-profile area of illegal natural resource trade is the trafficking of wildlife. It implies the poaching and smuggling of commodities such as rhino horn, ivory, tiger bones, and other wildlife with a high commercial value. The total commercial exchange of wildlife has been estimated at between USD 10 to 20 billion a year (UNEP INTERPOL). 

  • The second major area of the activity is illegal logging. This occurs when timber is harvested, transported, and brought or sold in violation of national laws. The estimated annual value of illegal logging and forestry crimes reaches USD 51 to 152 billion (UNEP INTERPOL). The most affected regions by this practice are the main tropical timber-producing countries in Southeast Asia, Central Africa,  South America, as well as the Caucasus and the Russian Far East (IISD). 

  • Illegal, unreported, and unregulated fishing (IUU) refers to fishing and fishing-related activities conducted in contravention to national, regional and international laws. It can occur in many ways; through non-reporting, misreporting or under-reporting of information on fishing operations, fishing by ‘stateless’ vessels, fishing activities which are not regulated by states etc. (WTO). IUU is a lucrative business for criminals as it often targets high-value species (i.e. cod, salmon, lobster) which can be traded only in small quantities but the demand and prices are high. According to the United Nations, the estimated worth of illegal fisheries is USD 11 to 24 billion (UNEP INTERPOL). 

  • A growing aspect of environmental crimes is the illegal trade of waste and chemicals. Criminals exploit the high costs associated with legal waste management and make profits from illegal trafficking and disposal activities, circumventing environmental legislations. Europol reports that illegal waste trafficking and disposal activities have become one of the fastest growing areas of organised crime. According to Interpol, the illegally traded waste and chemicals  are exported primarily from Europe and North America with the main destinations of Asia and Africa, but it also occurs between European countries.

  • Illegal mining, and more specifically the illicit trade of gold, diamonds, minerals, and oil, have become also a central environmental and security concern. According to the Global Initiative against Transnational Organized Crime, this is an activity closely tied to money laundering, corruption, environmental destruction, labour exploitation and sex trafficking. 

Major environmental crimes.

Source: UNEP

Rising environmental and security threats 

Just like many illicit trade practices, the illegal trafficking of natural resources is also associated with corruption, the exploitation of weak management regimes, particularly in developing countries which lack the capacity and resources for effective monitoring, control, and surveillance (FAO). 

The uneven distribution of natural resources and their illicit trading can have grave social and sustainability consequences as well. Illegal trafficking of natural resources and the abuse of the environment has devastating impacts on the ecosystem, biodiversity and to sustainable development through pollution, depletion and exploitation (AFDB). Furthermore, the weak management of natural resources disproportionately affect less developed countries who are more likely to depend directly upon resources for their livelihoods.This can lead to human security challenges but also to increasing global inequalities between developed and developing countries (OECD). 

The lucrative illicit trafficking of natural resources attracts transnational organized criminal groups. In addition, non-state armed groups, terrorists and other criminals also increasingly engage in environmental crimes, undermining and threatening peace, security and development. Environmental crimes are overall the fourth largest crime in the world after drug trafficking (USD 344 billion), counterfeiting (USD 288 billion) and human trafficking (USD 157 billion) (WCO).