EU Formalizes Leather Exemption from Deforestation Regulation

EU Deforestation Regulation Exempts Leather from 14 September

The European Commission formally removed bovine hides, the raw material for leather, from the scope of its EU Deforestation Regulation (EUDR) on 14 September 2026. This decision followed an intense lobbying campaign by the leather industry and confirmed a preliminary announcement made in July.

While the broader EUDR is scheduled to take effect at the end of this year, the exemption means that leather products will not be subject to the same deforestation-free requirements as other commodities, including beef, derived from cattle.

Industry representatives, including the Leather and Hide Council of America (LHCA), argue that leather is a valuable byproduct, noting that approximately 40% of global cowhides would otherwise go to waste.

Industry Seeks Traceability and New Standards

With the exemption secured for now, the leather sector is shifting its focus to improving its public image and addressing what it terms an unfair 'negative perception.' Around 400 international tanners, luxury-brand representatives, and meatpacking executives gathered at the 8th Sustainable Leather Forum in Paris on 7 September 2026 to discuss strategies.

Executives indicated that efforts would concentrate on leveraging scientific data, developing voluntary industry standards, and enhancing supply chain traceability. While these measures are intended to rebuild trust, industry leaders acknowledge that achieving comprehensive traceability across the complex leather supply chain remains a significant hurdle.

2030 Review to Reassess Leather's Status

The European Commission's decision to exempt leather is not permanent. The EUDR mandates a formal review of leather's status in 2030, which will determine if bovine hides should comply with deforestation rules. This timeline gives the industry a few years to demonstrate that its voluntary systems can effectively identify and mitigate deforestation risks.

Environmental groups, such as Earthsight, have criticized the exemption, labeling the industry's arguments as 'misleading' and pointing out a regulatory contradiction where products from the same animal face different rules.

The Commission itself estimated that leather could have accounted for up to 17% of deforestation risk for EU imports, acknowledging that excluding it might relocate rather than eliminate risks.

Edoardo de Paola, secretary general of COTANCE, an association representing European tanneries, highlighted the political landscape, noting that EU elections in 2029 could influence the Commission's approach to environmental protection ahead of the 2030 review.

Implications for Asia's Leather Supply Chains

For Asian manufacturers and exporters of leather products, including furniture, footwear, and other FF&E components destined for the European Union, the current exemption offers a temporary reprieve from stringent EUDR compliance.

However, the looming 2030 review means that companies in major leather-producing nations like India, China, and Vietnam should proactively invest in robust supply chain traceability systems and adopt verifiable voluntary standards now. This preparation will be crucial to mitigate future trade risks if leather is re-included in the EUDR.

Procurement teams and specifiers in Asia should ask suppliers about their current traceability efforts and adherence to recognized sustainability frameworks to ensure long-term market access and compliance readiness.