Brussels – A proposed carve-out for the leather industry from upcoming European Union deforestation rules is facing mounting opposition from environmental campaigners, who argue it would significantly weaken efforts to halt the import of commodities linked to forest loss. The debate centers on the EU’s Deforestation Regulation (EUDR), aimed at ensuring that products sold in Europe haven’t contributed to deforestation globally. While the regulation initially included leather, a last-minute amendment, reportedly pushed by Italy and other leather-producing nations, sought to exempt it, citing difficulties in tracing the origin of hides and skins.
The EUDR, set to take effect in December 2024, requires companies to demonstrate that their products are deforestation-free before they can be sold in the EU. This applies to commodities like soy, beef, palm oil, cocoa, coffee, rubber, and wood. The proposed exemption for leather, however, has sparked concerns that it would create a loophole, allowing products linked to deforestation to continue entering the European market. The core of the dispute revolves around the traceability of leather supply chains, which are often complex and involve multiple actors across different countries. Campaigners argue that while traceability challenges exist, they are not insurmountable and shouldn’t justify weakening the regulation.
The Complexity of Leather Supply Chains
The leather industry’s supply chains are notoriously opaque. Hides and skins are often a byproduct of the meat industry, making it difficult to trace them back to the land where the cattle were raised. Processing often occurs in multiple countries, adding layers of complexity. According to a report by the Forest Declaration Platform, cattle ranching is a major driver of deforestation, particularly in the Amazon rainforest. The 2023 Forest Declaration Assessment found that while deforestation rates have slowed, they remain significantly higher than levels needed to meet climate goals.
“The leather industry has been lobbying hard to get itself excluded from the EUDR, arguing that traceability is too difficult,” says Anke Schulmeister-Oldermann, a forest policy expert at Greenpeace EU. “But this is simply not true. Technology exists to trace leather back to its origin, and companies have a responsibility to ensure their supply chains are deforestation-free.” Schulmeister-Oldermann emphasizes that excluding leather would undermine the entire purpose of the EUDR, creating a precedent for other industries to seek exemptions based on similar arguments.
A Delay in Implementation and Calls for Fairer Supply Chains
The implementation of the EUDR has already faced some delays. Originally slated for full implementation in June 2025, the timeline has been adjusted, with stricter requirements phased in over time. This delay, as reported by The Jakarta Post, is seen by some as an opportunity to build fairer and more transparent supply chains, rather than a weakening of the regulation. Indonesia, a major producer of commodities covered by the EUDR, has expressed concerns about the regulation’s potential impact on smallholder farmers and has called for greater technical assistance to help them comply.
The debate over leather isn’t happening in a vacuum. It reflects a broader tension between environmental protection and economic interests. Italy, a global leader in leather production, has been particularly vocal in its opposition to including leather in the EUDR. Italian officials argue that the regulation would put their industry at a competitive disadvantage and lead to job losses. However, campaigners counter that a transition to sustainable leather production is possible and necessary, and that investing in traceability and responsible sourcing will ultimately benefit the industry in the long run.
Stakeholder Positions and Concerns
Here’s a breakdown of key stakeholder positions:
- Environmental NGOs (Greenpeace, WWF): Strongly oppose the leather carve-out, arguing it weakens the EUDR and allows deforestation to continue.
- Leather Industry (Italian Manufacturers Association): Advocate for the exemption, citing traceability challenges and potential economic harm.
- EU Commission: Currently reviewing the proposed amendment, balancing environmental concerns with economic considerations.
- Indonesia & Other Producing Nations: Seeking clarity and technical assistance to comply with the EUDR, expressing concerns about the impact on smallholder farmers.
The Role of Traceability Technologies
Advancements in traceability technologies are offering potential solutions to the challenges of tracking leather supply chains. Blockchain technology, for example, can create a secure and transparent record of each step in the supply chain, from the farm to the finished product. Other technologies, such as DNA testing and satellite monitoring, can also be used to verify the origin of hides and skins. However, the widespread adoption of these technologies requires investment and collaboration across the industry.
“Traceability is not a magic bullet, but it’s a crucial first step,” says Dr. Maria Hernandez, a supply chain expert at the University of Oxford. “It allows companies to identify and address risks in their supply chains and to ensure that they are not contributing to deforestation.” Dr. Hernandez notes that traceability systems are most effective when they are combined with other measures, such as certification schemes and independent audits.
The European Parliament is expected to vote on the final version of the EUDR in the coming weeks. The outcome of that vote will determine whether the leather industry will be included in the regulation or granted an exemption. Campaigners are urging MEPs to reject the proposed carve-out and to uphold the integrity of the EUDR. The decision will have significant implications for the fight against deforestation and for the future of sustainable supply chains. The next key date is March 11th, when the European Parliament’s Environment Committee will vote on the proposed amendments.
This debate highlights the complexities of balancing environmental protection with economic interests. The EUDR represents a significant step towards halting deforestation, but its effectiveness will depend on its scope and enforcement. The leather industry’s attempt to secure an exemption underscores the need for strong regulations and a commitment to transparency and accountability throughout the supply chain.
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