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EU to remove leather from anti-deforestation law after industry pressure, officials say

Published by Global Banking & Finance Review

Posted on April 30, 2026

2 min read

· Last updated: April 30, 2026

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EU to remove leather from anti-deforestation law after industry pressure, officials say

EU to Exclude Leather From New Anti-Deforestation Law Amid Industry Pressure

EU's Anti-Deforestation Law and the Leather Industry

By Kate Abnett

BRUSSELS, April 30 (Reuters) - The European Commission is set to exclude imports of leather from its anti-deforestation law, EU officials told Reuters, after a campaign by industry groups which argued that production does not incentivise the cattle farming that fuels forest destruction.

The exemption will remove leather, hides and skins from the world-first law, which from December will require companies selling goods including soy, coffee, beef and palm oil into the EU to prove their products did not cause deforestation.

A Commission spokesperson declined to comment on the plan.

Implications and Enforcement of the Law

Those breaking the rules risk hefty fines and a potential ban on accessing the EU market.

Environmental Groups' Concerns

Environmental groups have urged the EU not to exempt leather, arguing that this would weaken the law's ability to curb deforestation.

Leather Industry's Arguments

Leather industry groups have argued that as a by-product of the meat industry, with a relatively low value, leather's production does not incentivise the cattle farming that drives deforestation. Beef imports are covered by the EU law.

Industry Impact and Advocacy

Including leather "will have a devastating impact on the EU tanning industry," Europe's tanning and dressing industry body COTANCE said in a public submission to the EU last year, adding that tanneries would not be able to force cattle farming firms further up the supply chain to comply with the EU law.

Industry groups have stepped up their calls in recent weeks, making their case to EU lawmakers and representatives from the European Commission at an event at the European Parliament on April 8.

Europe's Leather Market

Europe's tanning industry is the world's largest supplier of leather, according to the EU. 

European tanneries import around 40% of the raw materials - such as hides - they use from countries including Brazil and the U.S., industry data shows.

Background and Policy Development

The Commission's analysis, when it first designed the law in 2021, had said leather is "a relevant factor of deforestation according to literature and feedback from stakeholders".

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.

(Reporting by Kate Abnett;Editing by Elaine Hardcastle)

Key Takeaways

  • Leather (HS codes 4101, 4104, 4107) is set to be excluded from the EU Deforestation Regulation (EUDR) after lobbying by tanning industry groups citing low value and limited influence on cattle supply chains (earthsight.org.uk).
  • Environmental and human rights groups argue the exclusion would undermine policy coherence—beef from deforested cattle would be banned, yet hides from the same animals could enter EU markets unregulated (hrw.org).
  • Investigations show leather supply chains remain linked to deforestation—in Paraguay, Italian tanneries tied to deforested land are pushing for carve‑outs even as they import such hides (eenews.net).

References

Frequently Asked Questions

What products are covered by the EU's anti-deforestation law?
The law covers imports like soy, coffee, beef, and palm oil, requiring proof they didn't cause deforestation.
Why is leather being exempted from the EU deforestation law?
Leather is being exempted after industry groups claimed its production does not drive cattle farming or deforestation.
What penalties exist for breaking the EU's anti-deforestation rules?
Violators risk hefty fines and a potential ban on accessing the EU market.
Which countries export raw leather materials to the EU?
European tanneries import about 40% of raw materials from countries such as Brazil and the U.S.
How have environmental groups reacted to the leather exemption?
Environmental groups argue the exemption weakens the law's ability to reduce deforestation.

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