GB Energy: The Forced Labour Concerns in Solar Supply Chains

Legislation designed to prevent companies implicated in forced labour — particularly within Chinese solar supply chains — from accessing public funds through Great British Energy could be weakened.

Despite controversies over the exploitation in Chinese solar panel production, Labour MPs are under pressure to remove a crucial clause implemented in the energy bill.

This proposal has escalated debates on whether the UK should prioritize ethical values in its renewable energy supply chains or maintain its trading relationships with China.

There have been persistent allegations, which the Chinese government has denied, that the solar panels Great British Energy may procure are manufactured using Uyghur forced labour.

Labour MP Alex Sobel is at the forefront of introducing an amendment that would empower the independent anti-slavery commissioner Eleanor Lyons to determine if there is reliable evidence to support these allegations.

The Business and Trade Select Committee has highlights the need to make sustainable progress.

“It is well evidenced that the renewable sector is heavily dependent on companies sourcing from areas like Xinjiang in China and that forced labour is endemic in the region through involuntary labour transfer schemes,” it says.

“The Great British Energy Bill provides an ideal vehicle to ensure that the green transition is not built on the back of contemporary slaves.”

The Great British Energy Bill

The Great British Energy Bill is designed to bolster the creation of Great British Nuclear and Great British Energy.

As part of the government's broader strategy, this bill is pivotal in achieving the net zero emissions target, enhancing long-term energy security, and reducing consumer energy costs.

The primary goals of Great British Nuclear and Great British Energy are:

• Reducing greenhouse gas emissions from energy produced from fossil fuels
• Improving in energy efficiency
• The production, distribution, storage and supply of clean energy
• Measures for ensuring the security of the supply of energy

Since passing the House of Commons in October 2024, the bill has made its way through legislative scrutiny, receiving a second reading in the House of Lords in November.

The approval of this bill will enable the Secretary of State to financially support Great British Energy, potentially transforming the UK's energy landscape into one that is more independent, sustainable and beneficial to its citizens.

The controversy

Sobel's proposed amendments are contentious, primarily due to their potential influence on UK-China diplomatic relationships and internal political dynamics within the Labour Party.

The amendment, supported by various political figures including Labour peer and human rights barrister Helena Kennedy.“The UK has been crystal clear that the UK will not tolerate slave-made goods and appreciates more must be done to root them out," Sobel explains. "Great British Energy provides us with the opportunity to not only pursue our green transition but bolster our national security, but only if we are to reduce our dependence on China.

“Ensuring our solar supply chains are free from slavery would also see the UK take a leading position on human rights, as a force for good.

“We have listened to the government arguments and tabled an amendment which would provide a practical solution to this issue, assuring we are aligned with actions in Europe and the US.”

However, this comes at a time when the UK seeks to mend and expand trade relations with China, as evidenced by recent diplomatic visits by prominent UK officials.

Critics argue that restricting access to Chinese-made solar panels, which are integral to the UK's renewable energy plans, could hinder the nation's progress towards sustainable energy.

Supporters of the amendment counter that it will help protect public money from supporting industries involved in forced labour, thereby reinforcing the UK's commitment to upholding human rights globally.

Former Conservative Exports Minister Lord Offord says: “The UK’s Modern Slavery Act 2015 requires companies to take responsibility for their supply chains, yet we know that modern slavery remains a serious issue in the global energy sector, particularly in the sourcing of solar panels, batteries and raw materials such as lithium and cobalt.

“This amendment does not create unnecessary bureaucracy or hinder investment; it simply ensures that taxpayers’ money does not fund exploitation.”

How can this be resolved?

Reaching a resolution that maintains ethical standards without undermining critical international relations or slowing down domestic energy objectives is crucial.

A transitional period, during which companies can establish and demonstrate their compliance with forced labour-free supply chains, might provide a balanced solution.

This approach allows the UK to uphold its ethical standards while ensuring the smooth implementation of Great British Energy.

Supporting UK-based companies to diversify their solar and battery supply sources can minimise reliance on regions associated with high risks such as forced labour.

This strategy not only boosts the UK's energy security but also its standing in human rights globally.

The wider impact on supply chains

If the amendment passes, companies will be compelled to evidence the absence of forced labour in their supply chains.

While this would increase compliance and transparency requirements, it could disrupt access to cost-effective components from China.

In the long run, this could enhance ethical standards and make supply chains more robust against various forms of exploitation.

The ongoing debate surrounding the application of forced labour clauses in the Great British Energy Bill underlines the complex interplay between environmental objectives, human rights considerations and global trade dynamics.

Ensuring a harmonious balance in these areas remains a challenging yet critical endeavour for the UK.

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