Prolific fly-tippers face up to three years in jail under new guidelines unveiled for judges in England and Wales.
And large businesses face fines of up to £2 million for illegally dumping waste and rubbish under the proposals unveiled by the Sentencing Council.
Small companies, such as a family waste removal business, would face fines of between £450 and £2,000 for minor offences, going up to £70,000 for causing serious harm.
The council said it hopes magistrates will hit firms and individuals with the highest levels of penalties available for the most serious offences.
Sentencing Council member and magistrate Katharine Rainsford said: "Offences like fly-tipping and illegal disposal of hazardous waste can cause significant damage to the environment and put people's health at risk.
"We're improving guidance for courts to help ensure consistent and appropriate sentences for offenders, particularly for corporate offenders who can be guilty of the worst offences.
"These offences are normally motivated by making or saving money at the expense of the taxpayer. Our proposals aim to ensure that sentences hit offenders in their pocket."
The council has opened a consultation on the guidelines which closes in June.
Environment Agency chief prosecutor Anne Brosnan said: "Environmental crime puts the environment and people's health at risk, and illegal operators undercut legitimate businesses that do the right thing.
"Clearer guidelines will be invaluable in helping magistrates and judges hand out appropriate sentences for environmental offences, and ensure that this type of offence is dealt with consistently across the country."