"The rise of the group, known as the Islamic State, is responsible for the worsening of the situation to a large extent," Jean-Marie Bockel, a French lawmaker, said in his report.
He noted that a year after the previous PACE report on Syrian refugees, the situation had deteriorated significantly.
Austrian lawmaker Stefan Schennach described the situation as an "unimaginable disaster," with the ISIL involved in very lucrative oil trading and kidnapping people for ransom.
These human rights atrocities are made in the name of Islam, but they have nothing to do with religion, state the parliamentarians.
The lawmakers also stressed that the actions of the ISIL are a genocide against the Yazidi minority, as well as the Shiites and Christians.
The ISIL is primarily operating in Iraq and Syria, where it controls large territories. The group is also making attempts to branch out to other countries, including Afghanistan, Libya and Pakistan.