The European Commission has suggested removing leather from the revised EU Deforestation Regulation to prevent penalizing EU producers of items like handbags and shoes. The proposal, open for public feedback until June 1, includes adjustments to the product scope, such as adding soluble coffee and certain palm oil derivatives while excluding leather and retreaded tires. Additionally, the Commission has introduced a set of supportive measures to facilitate the implementation of the revised law, aiming to reduce compliance costs by approximately 75%.
The supporting measures consist of a simplification review report, updated guidance, and frequently asked questions to offer clarity to economic operators, members, and third countries. These measures are intended to ensure legal stability and predictability while reducing the financial burden on companies subject to the EU Deforestation Regulation obligations. The regulation targets key goods entering the EU market to prevent their involvement in deforestation and forest degradation, crucial factors contributing to climate change and biodiversity loss.
The EU Deforestation Regulation covers seven commodities, including cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some derived products. It mandates that any operator or trader introducing these goods to the EU market must demonstrate that the products are not linked to recent deforestation or forest degradation. The regulation is scheduled to take effect from December 30, 2026, for large and medium companies, and from June 30, 2027, for micro and small enterprises.
