EU regulators moved to carve out leather and retreaded tyres from the anti‑deforestation import ban, diluting the EUDR’s climate ambition. The European Commission said the exemption will ease compliance for Italy‑led leather producers who argued that tracing hides is impractical. Lobbyists secured the carve‑out after months of pressure, signaling a concession to domestic industry in the broader EU sustainability agenda.

Commission insiders acknowledged that excluding leather weakens environmental goals, yet they cited economic considerations and the argument that meat imports—still covered by the rule—drive far more deforestation. The EUDR already demands supply‑chain tracing for cattle, timber, cocoa, soy, palm oil and rubber, with full compliance expected by end‑2026 for larger firms and medium‑size enterprises across the bloc to meet timelines.

By contrast, retreaded tyres remain exempt, justified by lower energy use and waste. Industry groups welcomed the relief, while NGOs warned the carve‑outs could erode forest protection. Companies such as Ferrero and Nestlé argue that repeated delays already threaten global woodlands. The rules will phase in for small businesses by June 2027, tightening reporting obligations across sectors.