How would states avoid business killing the Environment?

There are many policies that try to implement the states to counter this problematic such as a reduction of taxes by doing this. Other solutions that have came out of the State are to regulate more efficiently the pollution of factories. Which other solutions do you come up with to counter this problematic?

Making strict laws the punish people that cut down trees or hunt animals, and make the punishment many years in jail. An example of bussiness, which is actually the same state, that kills and destroys the enviroment is the wood that is meant to be destroyed by the mayor, Enrique Peñalosa.