The Forced Labour Regulation finally adopted

On Monday (21st October) the European Parliament adopted the final version of the “Regulation on Prohibiting Products made with Forced Labour”. The new EU law will ban all products ― and components in products ― that are proven to have been made with forced labour.

For the solar PV market the regulation could have a major impact as a significant portion of the materials used in solar modules originates from China’s Xinjiang province, where state-imposed forced labour is prevalent. The province accounts for about one-third of the world’s polysilicon production, which is uses to make solar modules. For this reason, the 2023 Global Slavery Index states that solar panels represent the fourth highest at-risk product for forced labour that is imported by the G20.

Now, only a formal approval by the Council of the EU (i.e., the Governments of the EU Member States) is awaited, after which the legislation will have passed through all necessary EU approval instances. The Council is expected to give its final approval in the coming weeks, consequently the Regulation could be published in the Official Journal of the EU already this year.

Unfortunately, it will take three years before the legislation is fully applicable. However, the important element is that the Database of force labour risk products or areas will be implemented beforehand. ESMC expects that Xinjiang province will be listed as a high-risk area for forced labour as soon as possible, which should prevent the import of solar PV modules or modules made with polysilicon, from that area and, in turn, would at least partly level the playing field for the European solar PV manufacturers.

– We will do everything possible to our efforts to ensure the forced labour ban is implemented as soon as possible, especially the Database of force labour risk products or areas. The green transition and the roll-out of solar energy should not be tainted by violations of human and labour rights, says Jens Holm, Sustainability Policy Director at ESMC.
– Hopefully this legislation will be a big help in securing solar supply chains free from forced labour, but this is also a unique opportunity to reshore solar PV manufacturing to Europe.