GB Energy Bans Solar Panels Linked to Forced Labour Practice
The UK's state-owned energy company Great British Energy is shifting procurement policy by eradicating the use of solar panels linked to unethical practices. Energy Secretary Ed Miliband said the decision aims to ensure the supply chains are free from modern slavery practices.
Miliband plans to amend existing legislation, reinforcing that Great British Energy's supply chains must exclude modern slavery elements.
The policy change overturns the government's previous stance, where a similar amendment had been dismissed just a month prior. The original amendment was intended to prevent expenditures in supply chains with credible evidence of modern slavery.
The focus is primarily on China's Xinjiang region, known for its polysilicon production which is a fundamental solar panel component. The area has been under scrutiny due to alleged exploitation of Uyghur Muslims, presenting ethical dilemmas for procurement professionals across importing nations.
China's influence on climate technology procurement
China holds a significant share in the global renewables supply chain, producing around 50% of the world's polysilicon. Consequently, the UK relies heavily on imports, with more than 40% of its solar photovoltaic equipment originating from China, according to UK customs data.
The decision to align Great British Energy with these ethical standards has been applauded globally. A government insider told the BBC, "there has been an acknowledgement of the argument that Great British Energy should be an industry leader".
This procurement policy change has received international commendation from energy experts.
"I really salute the UK government's decision," says Fatih Birol, Head of the International Energy Agency.
He emphasised that materials for green technologies "should really be produced in a socially and environmentally acceptable way".
Political views on ethical procurement
Within the UK, Labour MPs consider the move to be a triumph for ethical procurement in renewable energy sourcing.
But Andrew Bowie, who serves as the Conservative Shadow Energy Secretary, called the amendment "a humiliating U-turn from Ed Miliband", highlighting potential impacts on the governmentâs renewable energy targets.
Meanwhile, Sir Iain Duncan Smith, a former Conservative leader, supports the amendment. He commended the governmentâs decision, stating: "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."
Implementing ethical procurement strategies
While details of the legislative amendment are pending, the focus remains on ensuring GB Energy adheres to ethical procurement by eliminating slavery and human trafficking from its supply chains.
This goal presents challenges, particularly as verifying supply chain ethics in Xinjiang has proven complex for many sectors.
Past investigations have uncovered slave labour in manufacturing sectors for products destined for UK markets, accusations the Chinese government continues to deny.
"There's a problem right the way throughout the renewables sector with state-imposed forced labour in China," said Luke de Pulford of the Inter-Parliamentary Alliance on China.
"It is going to require a transition because China has such a dominance of the production of polysilicon... we're going to have to diversify."
The UK government remains confident that this ethical directive will not hinder its net-zero targets, citing sufficient capacity in alternative supply chains for solar panels.
A Department for Energy Security and Net Zero spokesperson stated that the Solar Taskforce would concentrate on developing supply chains that are "resilient, sustainable and free from forced labour."
Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.
Discover all our upcoming events and secure your tickets today.
Procurement Magazine is a BizClik brand
