Stricter Environmental Criminal Law – What Companies Need to Know

1. Overview

The draft bill published by the Federal Ministry of Justice to implement the Environmental Crime Directive (EU) 2024/1203 marks a far-reaching reform of German environmental criminal law. For companies, the draft significantly expands criminal exposure: liability would arise earlier, new protected environmental interests would be introduced, and additional environmentally relevant behaviors would become criminal offences. At the same time, the maximum corporate fine under Section 30 (2) of the Act on Regulatory Offences (OWiG) would be quadrupled – not only for environmental offences, but for all intentional offences attributable to a company. This reform of the German Criminal Code (StGB) goes well beyond the EU requirements.

The expanded fine framework signals a new expectation regarding corporate responsibility and reinforces the need for robust compliance and environmental management systems. Companies should now review and adjust their processes, permitting and documentation workflows, and governance responsibilities. Raising awareness among senior leadership is equally essential.

A further intensification of cross-border investigations is expected. Companies will need to anticipate more consistent and coordinated enforcement across the EU. As the proposed offences would already apply where conduct is merely capable of causing environmental harm, the risk of early investigative measures increases substantially.

Against this backdrop, a resilient compliance management system becomes a critical protective mechanism. Companies that already maintain risk management structures under the German Supply Chain Act (LkSG) should expand them to include environmental aspects. Regardless of any potential amendments to the LkSG, effective environmental risk management will be indispensable in light of the forthcoming legal framework.

1.1. New Protected Legal Interest: The “Ecosystem”

The draft bill introduces the “ecosystem” as an additional protected environmental medium in several criminal provisions (see Section 330d (1) No. 2 StGB-E). This includes ecologically significant, complex interactions between organisms and their non-living environment. Relevant ecosystems include forests, moors, certain water bodies, or agricultural land, whereas small-scale structures such as a single beehive are not covered. This shifts the focus from isolated environmental media to their functional interdependence. Companies should expect that interventions in natural areas may more readily be treated as criminally relevant.

1.2. Earlier Onset of Criminal Liability (“Risk-based Offences”)

Under the draft, it is sufficient that conduct is capable of significantly endangering environmental media to trigger criminal liability. This strengthens the preventive character of environmental criminal law and considerably broadens the scope for investigative authorities.

1.3. New Criminal Offences

The draft bill expands through several new or broadened offences, including:

• the unlawful placing on the market of certain environmentally harmful products,
• environmental harm caused by energy emissions,
• commencement of projects requiring environmental impact assessment without the necessary permit,
• a new qualified offence for “catastrophic environmental damage”.

In waste criminal law, the “small quantities” exemption in Section 326 (6) StGB would be abolished; what matters is solely whether harmful effects can be clearly ruled out.

1.4. Broad Concept of Unlawfulness

The EU Directive and the draft bill adopt a broad definition of unlawfulness, covering cases where a formally valid permit nevertheless clearly contravenes substantive environmental law.

In Germany, criminal liability typically attaches first to the management board or responsible senior personnel. This means companies cannot rely uncritically on existing permits. Environmental permits should be reviewed continuously to ensure they are not manifestly flawed - otherwise, senior managers may face criminal liability even without any personal misconduct.

1.5. Significantly Higher Corporate Fines

The maximum fines under Section 30 OWiG are set to increase substantially:

• up to EUR 40 million for intentional offences (previously EUR 10 million),
• up to EUR 20 million for negligent offences (previously EUR 5 million).

For administrative offences, the applicable maximum remains the one laid down in the relevant sector-specific provisions.

2. Outlook

The draft is currently in the consultation phase; federal states and associations were able to submit comments until 14 November 2025.

The feedback has been strongly critical: the new protected legal interest “ecosystem” is seen as too vague and, combined with the earlier onset of criminal liability, as creating an unpredictable risk for affected industries. The significant increase in fines is likewise viewed as disproportionate and potentially existentially threatening. Overall, associations warn that the proposal creates legal uncertainty rather than better environmental protection. It therefore remains to be seen in what form the Ministry of Justice will submit the government bill to Parliament following the Cabinet decision.