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Brussels, Belgium – The European Commission announced on Monday new adjustments to its landmark anti-deforestation regulation, which will see certain palm oil derivatives brought under its purview starting December 2027, while granting an exemption for leather and several other products.
Under the updated framework, imports into the European Union of palm oil derivatives specifically used in the manufacture of oleochemicals – compounds integral to paints, pharmaceuticals, lubricants, and food additives – will be subject to the bloc's stringent deforestation rules. Additionally, instant coffee and frozen cattle tongues have been added to the list of regulated commodities. These new inclusions are set to become effective on December 30, 2027.
The EU's deforestation law mandates that companies importing products such as soy, coffee, beef, and palm oil into the Union must provide verifiable proof that their goods were not produced on land deforested after December 31, 2020. The implementation of this policy had previously been delayed by two years, largely due to significant opposition from major exporting nations including Brazil, Indonesia, and the United States, which cited concerns over high compliance costs and potential adverse impacts on their exports to Europe.
In a key concession, the Commission confirmed the removal of leather, cattle hides and skins, re-treaded tyres, soybeans for sowing, and various automotive components like car seats from the regulation's scope. This decision marks a notable victory for the leather industry, which had successfully argued that leather, as a byproduct of the meat sector, does not directly incentivize the cattle farming practices often associated with deforestation. Environmental advocacy groups, however, had campaigned for leather to remain included.
Alongside these commodity adjustments, the Commission also released updates regarding the information-technology systems designed to assist companies in meeting the new compliance requirements. Concerns over the readiness of these systems were cited as a reason for a previous year-long delay in the law's overall rollout.
Source: Reuters