EU to Apply Deforestation Law to Palm Oil, Exempts Leather from 2027
Key Changes and Implications of the EU Deforestation Law
By Kate Abnett
BRUSSELS, July 13 (Reuters) - EU imports of palm oil derivatives will face the bloc's anti-deforestation rules from December 2027, while leather will be exempted from the law, the European Commission said on Monday.
Overview of the EU Deforestation Law
• The EU's deforestation law will require companies selling goods including soy, coffee, beef, and palm oil into the EU to prove their products did not cause deforestation.
Delays and International Opposition
• Brussels had already delayed the launch of the policy by two years, after opposition from Brazil, Indonesia and the United States, which say complying would be costly and hurt their exports to Europe.
Recent Amendments to the Law
Products Removed from the Law
• In the latest suite of changes, the Commission confirmed it will remove from the law leather, cattle hides and skins, re-treaded tyres, soybeans for sowing, and items including car seats.
Products Added to the Law
• At the same time, the EU will add palm oil derivatives used to manufacture oleochemicals, which are compounds derived from natural fats and oils used in paints, pharmaceuticals, lubricants and food additives.
• Instant coffee and frozen cattle tongues will also be added.
• The latest additions will take effect from December 30, 2027.
Industry and Environmental Reactions
Leather Industry Response
• The changes are a win for the leather industry, which had argued that as a by-product of the meat industry, leather's production does not incentivise the cattle farming that drives deforestation.
Environmental Groups' Concerns
• Environmental groups wanted leather to remain on the list.
Implementation and Compliance
Adjustments to Information-Technology Systems
• The Commission also published adjustments to the information-technology systems that companies use to comply with the law. Last year, the Commission cited concerns about the readiness of these systems as the reason it delayed the law by another year.
Reporting and Editorial Credits
(Reporting by Kate Abnett, editing by Andrei Khalip)
