Rights Group Calls on European Commission to Revise Anti-Deforestation Regulation Following Critical Omission

Why It Matters

Excluding leather creates a loophole that could sustain deforestation and weaken the EU’s climate credibility, affecting global supply chains and trade compliance.

Key Takeaways

• HRW warns leather exclusion undermines EUDR's deforestation goals
• Regulation projected to cut EU-driven deforestation 29% by 2030
• 50% of global cocoa already geolocated under EUDR requirements
• Non‑compliance fines start at 4% of annual EU turnover

Pulse Analysis

The European Union’s Deforestation Regulation, adopted in 2023, represents one of the most ambitious supply‑chain policies aimed at curbing forest loss linked to commodities such as cattle, coffee, soy and cocoa. By obligating importers to submit precise geo‑coordinates for the origin of each product, the rule creates a traceability backbone that authorities can audit. Early data show the framework is already delivering measurable results: the EU estimates a 29 % reduction in its own deforestation footprint by 2030, and roughly half of the world’s cocoa harvest is now mapped to specific farms. These achievements have positioned the EU as a global benchmark for climate‑smart trade.

Human Rights Watch’s latest alarm centers on a draft amendment that would carve out leather from the list of covered goods. Because leather is a by‑product of cattle, allowing it to enter the market while banning beef from illegally cleared land creates a regulatory loophole that could sustain the very driver of tropical forest loss. Cattle ranching accounts for about 70 % of deforestation in the Amazon and Southeast Asia, and leather processing often follows the same supply chains. Excluding the material therefore risks eroding the credibility of the EUDR and weakening its deterrent effect.

The Commission has opened a public consultation ahead of the December 2026 compliance deadline, giving NGOs, industry groups and member states a chance to shape the final text. Companies that fail to meet the geo‑location standards face fines of at least 4 % of annual EU turnover, a penalty that could cripple non‑compliant traders. Revising the draft to keep leather within the scope would close the loophole, reinforce the EU’s climate leadership, and signal to global producers that deforestation‑free certification must be comprehensive. Stakeholders are watching closely, as the outcome will influence trade flows and sustainability standards worldwide.