Global supply chains for solar panels are undergoing a significant shift away from heavy reliance on China due to recent bans on products from Xinjiang. Both the US government and the United Nations have accused the Chinese government of committing human rights violations in Xinjiang. However, a new report by human rights experts in the solar industry reveals that the majority of solar panels globally still have substantial exposure to China and Xinjiang. The report, released on Tuesday, also criticizes the solar industry for becoming less transparent about the origins of its products, making it difficult for buyers to determine if their solar panels were made without forced labor.
The analysis, conducted by solar industry analyst Alan Crawford and Laura T. Murphy, a professor of human rights and contemporary slavery at Sheffield Hallam University, examined supply chains in the solar industry. Researchers involved in the study chose to remain anonymous due to fears of retribution from the Chinese government. The report was funded by the London-based Modern Slavery and Human Rights Policy and Evidence Center.
While the solar industry has faced criticism in recent years for its ties to Xinjiang, a key provider of polysilicon, the material used to make solar panels, many companies have pledged to scrutinize their supply chains and establish factories outside of China to serve Western markets. The Solar Energy Industries Association, the largest trade association in the industry, has urged companies to shift their supply chains and sever ties with Xinjiang. Over 340 companies have signed a pledge to keep their supply chains free of forced labor.
Despite these efforts, the report found that major global solar manufacturers, all based in China, still have “high” or “very high” potential exposure to Xinjiang. Some Chinese companies, such as LONGi Solar and JA Solar, have clear ties to suppliers operating in Xinjiang. Even within “clean” supply chains established to serve the United States or Europe, many companies still source raw materials from suppliers with exposure to Xinjiang.
The report highlighted the lack of transparency in the industry, with companies failing to disclose enough information about their supply chains. Some companies appear to be using undisclosed suppliers, as they do not purchase enough materials from outside Xinjiang to meet production goals. In other cases, companies provided contradictory information about their supply chains.
China’s dominance in the solar industry poses a challenge for other countries, including the United States, as they strive to deploy solar panels to combat climate change. China controls at least 80 percent of global manufacturing at each stage of the solar panel supply chain. The Chinese government denies the presence of forced labor in Xinjiang’s work programs but human rights experts argue that those who refuse to participate can face detention or other punishments.
The US implemented the Uyghur Force Labor Prevention Act in June last year, assuming that any product containing materials from Xinjiang is made with forced labor unless proven otherwise. Since then, US customs officials have detained $1.64 billion worth of imported products, including solar panels, to ensure compliance. These detentions have caused significant delays in solar installations in the US, jeopardizing the country’s energy transition.
As the solar industry grows to meet the demand for renewable energy, there are concerns that materials and equipment linked to forced labor could become more prevalent. Over the next decade, the industry expects to install double the amount of solar panels compared to previous years, with an average annual growth of 11 percent. However, the manufacturing capacity in the United States can only meet less than a third of the national demand.
In a report released in June, human rights group Walk Free estimated that 50 million people globally lived under forced labor conditions in 2021, with 10 million more than in 2016. The group acknowledged the need for renewable energy to address climate change but emphasized the importance of eliminating forced labor from the supply chain.
The report highlighted specific companies, such as JinkoSolar and Hanwha Qcells, that have made efforts to establish supply chains outside of China but still have high potential exposure to Xinjiang. JinkoSolar’s factory in Florida was raided by Homeland Security Investigations earlier this year, raising concerns about misrepresentations in the source of imports containing materials from Xinjiang. Hanwha Qcells, despite its expansion in the US, relies on undisclosed suppliers in China for the majority of its products.
The solar industry in the United States is experiencing increased investments and expansion due to tax credits and incentives for clean energy. However, Michael Carr, executive director of Solar Energy Manufacturers for America, has expressed concern about the US falling behind in solar manufacturing due to its dependence on Chinese suppliers.
In conclusion, the solar industry is undergoing a shift away from reliance on China and Xinjiang due to concerns about human rights violations. However, the report emphasizes that the majority of solar panels globally still have significant exposure to China and Xinjiang. Transparency in the industry is lacking, making it difficult for buyers to determine if their solar panels are free of forced labor. The dominance of China in the solar industry poses challenges for other countries striving to transition to renewable energy. Eliminating forced labor from the supply chain is crucial for the industry’s growth and sustainability.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
