An amendment to the legislation is to be introduced by Energy Secretary Ed Milliband aimed at ensuring there are no products linked to slave labour in GB Energy's supply chains. The amendment follows the rejection by minsters of an amendment to a bill aimed at preventing GB Energy from spending money on solar panels produced using supply chains with links to modern slavery, particularly involving the alleged Chinese exploitation of Uyghur Muslims in the Xinjiang region, from where around 50 percent of the world’s polysilicon originates.
China has dominated the global renewables market thus far, meaning that the issue of slave labour is a real issue for the UK given that the country imports more than 40 percent of its solar PV from there, according to data from HMRC.
A government source told the BBC this morning that “there has been an acknowledgement of the argument that GB Energy should be an industry leader.” This follows praise from the International Energy Agency (IEA) regarding the decision, as well as approval from Conservative Party figures, notably former Conservative leader Sir Iain Duncan Smith, who said that the government would have faced a rebellion if it had not changed its stance.
“I hope and believe they are now seeing sense and realise it is a terrible situation to allow products that have been produced by slave labour” he added, speaking to the BBC.
The change in policy is likely to present new challenges for companies utilising Chinese-imported polysilicon, given official denials of slave labour by the Chinese government. However, the government could impose a ban on any solar imports from Xinjiang, which in turn would force companies to diversify.
“Ed Miliband is drawing an important line in the sand with this news” said Christophe Williams, CEO of Naked Energy. “It’s a win for human rights, but also shows a commitment to British business. As a global community we have to reach net zero, but it mustn’t come at the cost of human suffering. This can't be emphasised enough – the solutions to get us to net zero are already here, so we don’t need to be relying on technology coming from markets using slave labour. For example, over 90 percent of the materials needed to make solar thermal technology, which is crucial to decarbonise heating demand, comes from Europe, as opposed to solar PV where China has 80 percent of the solar manufacturing capacity. Today’s decision means there is no choice but to invest more in homegrown technology and create more jobs. This could have a significant impact - for example, with renewable heat networks, which are vital in making net zero a reality, the Heat Network Industry Council estimates that the sector could create between 20,000 and 35,000 direct additional jobs by 2050. What is needed is increased investment and attention from the Government. Locally manufactured technology benefits from strong labour laws, which protects workers, and a focus on it will create the domestic growth that the government is pushing for. It’s better for people, businesses and the planet.”
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