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

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.

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

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

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.

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 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.

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)