Contribution
My Lords, my Amendment 100 seeks to insert a new clause after Clause 7 that would require Great British Energy to verify its supply chain in respect of unethical practices and to attempt to engage in ethical supply chain practices only. I will also speak in favour of the principles contained in Amendments 43 and 109 in this group, moved by the noble Lord, Lord Alton, and supported by others.
To be clear, I believe in people and planet, and we should not have to choose one or the other. The two are intertwined and co-dependent. Our goal of reaching net zero must not come at the expense of supporting repressive regimes which do not support the human rights of their own citizens, or on the back of slave labour.
The truth is that it is certain that a proportion of the supplies and materials used in this country as part of our efforts to decarbonise have unknown ethical origins or, if we look more closely, are probably produced in regimes with modern slavery practices.
Polysilicon manufacturers in China account for some 45% of the world’s supply, and some 80% of the world’s solar panel manufacturing. As the noble Lord, Lord Alton, alluded to, Sheffield Hallam University has linked forced labour in China’s labour transfer programme directly to the global supply chain of solar panels. Some 11 companies were identified as engaging in forced labour transfer, including all four of China’s largest polysilicon producers. Some 2.7 million Uighurs are subject to state detention and coerced work programmes.
The combination of unethical practices, cheap labour and deliberate foreign policies means that China controls much of the world’s rare earth materials and manufacturing that is necessary to produce solar panels. China built more renewable technology than the rest of the world combined last year. But China is still opening and highly dependent on coal mines. It is time for China itself to choose which side of the green revolution it is on.
It is not in our national interest to continue with such foreign power dependence in order to secure our net-zero goals. What actions are the Government considering or planning to undertake, along with our allies and partners, to verify supply chains and build our own manufacturing capacity, particularly for solar panels, so that we are not dependent on foreign countries for the materials we need to decarbonise, and so that we can be certain that the products we use are not the result of human suffering? I hope the Prime Minister raised these important issues in his recent meeting with the Chinese President.
My amendment would place a duty on GB Energy to verify and engage in ethical supply chain practices. This is not the end of the journey, but it is a start. Of course, these problems extend way beyond GB Energy and these measures should be implemented nationally.
Amendment 43 says that no financial assistance must be provided
“if there exists credible evidence of modern slavery in the energy supply chain”.
Amendment 109 calls for a warning to be placed on any products sourced from China that are used by GB Energy. Although I support the spirit and intention of both these amendments, my worry is that the Government will not be able to support them and that they will fail.
My fear is that if Amendment 43 passed it would put GB Energy at an unfair disadvantage in relation to other competitors in the industry operating in the UK. For this reason, the Government will most likely reject it. On Amendment 109, I expect that the implication of labelling these products might simply be to prevent their purchase by GB Energy, while other competitors in place in the UK marketplace without this labelling requirement would be able to continue their supply. Again, my worry is that this would do more to put GB Energy at a disadvantage versus its competitors operating in this country. The Government will probably reject the amendment on those grounds.
My hope is that my amendment or a newly tabled one on Report might help us to find a way forward together on this important issue, which we all need to make progress on. To be clear, this issue goes well beyond GB Energy, and the real long-term solutions to it sit with the verification of supply chains, strong and determined diplomacy, the creation of and investment in solar panel manufacturing on our own or along with our allies, or the research and development of new forms of manufacturing processes for these technologies. These are essential issues, but I suspect we will need to engage constructively together to find a way forward prior to Report, and that the solution, ultimately, goes beyond the scope of the Bill and GB Energy.