EU drops leather from deforestation law, easing rules for bag and shoe makers
Synopsis
The European Commission's proposal to drop leather from the EU Deforestation Regulation is a significant concession to European industry — but it comes packaged with a 75% compliance cost reduction pledge and new commodity additions. The real question is whether environmental advocates will accept these trade-offs before the 1 June consultation deadline.
Key Takeaways
The European Commission proposed removing leather and retreaded tyres from the EU Deforestation Regulation on 5 May 2025 .
Soluble coffee and certain palm oil derivatives would be added to the regulation's product scope under the same draft.
Supporting measures are projected to cut annual compliance costs by 75 per cent compared to the original regulation.
The regulation was revised and adopted by the European Parliament and Council of the EU in December 2025 .
Large and medium companies face a compliance deadline of 30 December 2026 ; micro and small enterprises by 30 June 2027 .
Public feedback on the draft delegated act is open until 1 June 2025 .
The European Commission on Monday, 5 May 2025, proposed removing leather from the scope of the revised EU Deforestation Regulation, in a move designed to shield European producers of goods such as handbags and shoes from compliance penalties. The draft amendment is open for public feedback until 1 June 2025.
Key Changes to the Product Scope
The draft delegated act proposes targeted amendments to the regulation's product scope. Alongside the exclusion of leather and retreaded tyres, the proposal would add soluble coffee and certain palm oil derivatives to the list of covered commodities, according to a Commission statement cited by Xinhua News Agency. The changes reflect a calibrated attempt to balance environmental goals with the commercial interests of EU industry.
Supporting Measures to Cut Compliance Costs
The Commission simultaneously unveiled a package of supporting measures aimed at ensuring smooth implementation of the revised regulation, following its adoption by both the European Parliament and the Council of the EU in December 2025. The package includes a simplification review report, updated guidance documents, and a revised set of frequently asked questions. Notably, these measures are expected to reduce annual compliance costs for affected companies by approximately 75 per cent compared to the original regulation's requirements.
The Commission stated the package is designed to provide
Point of View
Which produces leather as a by-product, remains one of the leading drivers of Amazonian deforestation. By decoupling leather from the cattle commodity chain, the Commission risks creating a loophole that allows deforestation-linked supply chains to re-enter the EU market through processed goods. The 75% compliance cost reduction is a headline number, but its credibility depends on whether simplified rules still carry genuine traceability teeth. With implementation deadlines looming in late 2026, the window for course-correction is narrowing.
NationPress
5 May 2026
Frequently Asked Questions
Why is the EU proposing to remove leather from the Deforestation Regulation?
The European Commission proposed removing leather to avoid penalising EU producers of goods such as handbags and shoes. The move is part of a broader effort to refine the regulation's product scope while reducing compliance burdens on European industry.
What commodities are being added to the EU Deforestation Regulation under the new proposal?
The draft delegated act proposes adding soluble coffee and certain palm oil derivatives to the regulation's covered product list, even as leather and retreaded tyres are removed.
How much will compliance costs change under the revised regulation?
The Commission's supporting measures package is expected to reduce annual compliance costs for affected companies by approximately 75 per cent compared to the original regulation's requirements.
When does the EU Deforestation Regulation take effect?
The regulation applies from 30 December 2026 for large and medium-sized companies, and from 30 June 2027 for micro and small enterprises.
How can stakeholders respond to the proposed changes?
The draft delegated act is open for public feedback until 1 June 2025. Economic operators, EU member states, and third countries can submit responses through the Commission's consultation process.
