European Commission Moves to Exclude Leather from EUDR in Major Regulatory Win

In a development that leather industry groups have long advocated for, the European Commission has proposed excluding hides, skins, and leather from the scope of the EU Regulation on Deforestation-free Products (EUDR). The proposal, issued through a Draft Delegated Act on May 4, 2026, would amend Annex I of Regulation (EU) 2023/1115 without reopening the core legal text. If adopted after a four-week public consultation, it would remove one of the most contentious regulatory burdens facing the European leather sector.

The EUDR was designed to prevent products linked to deforestation from entering the EU market. For agricultural commodities like palm oil, soy, rubber, coffee, and cocoa, the logic was straightforward: demand for these products can drive land-use change, and regulation can reduce that pressure. Leather’s inclusion was always more disputed. The industry argued that leather is a by-product of meat and dairy production, not a primary driver of cattle farming. Regulating it, they contended, would impose massive compliance costs without reducing deforestation.

Cotance, the European leather industry association, welcomed the proposal. Its president, Manuel Rios, put the stakes in stark terms. “Today’s European Commission saved more than 30,000 jobs across European tanneries and sent a clear signal to the world: the leather industry is not a problem to be regulated away — it is a solution to be invested in,” he said.

The industry’s argument has been bolstered by academic research. A study from the Sant’Anna School of Advanced Studies at the University of Pisa found no scientific evidence linking leather production to deforestation. Complementary research from Montana State University concluded that demand for leather does not influence cattle farming levels. If leather demand were driving herd sizes, the reasoning goes, hide prices would correlate with cattle production decisions. They do not.

Industry groups also warned of unintended consequences if leather remained in the EUDR. Compliance costs could disrupt global supply chains, particularly for small and medium tanneries, and might push production to regions with weaker environmental standards. In that scenario, the regulation could actually undermine its own environmental goals by shifting production away from highly regulated European tanneries.

The proposed exclusion follows years of coordinated advocacy by organizations including Cotance, UNIC (the Italian tanners’ association), and the International Council of Tanners (ICT). Their case rested on a simple principle: regulation should be proportionate and evidence-based. The Commission’s move suggests that argument carried weight.

However, the fight is not entirely over. At the time of the proposal, the decision was still subject to a public consultation period ending on June 1. While the signals pointed toward adoption, the final delegated act had not yet entered into force when the proposal was announced.

Importantly, the leather industry has been careful not to frame the exclusion as a license to ignore sustainability. Cotance has reaffirmed its support for traceability initiatives, including the EN 18199 Leather Traceability Cluster standard, and has emphasized that European tanners operate under some of the world’s most stringent environmental and social standards. Removing leather from the EUDR, the industry argues, corrects a regulatory overreach without weakening the sector’s commitment to responsible production.

For leather businesses, the proposal offers regulatory relief and a measure of validation. For critics, it raises questions about whether the EU is bending to industry pressure. The debate reflects a larger tension: how to craft environmental rules that are both effective and scientifically defensible.

Source: International Leather Maker (internationalleathermaker.com)