EU Adopts Regulation To Ban Products Made With Forced Labour, Impacting Solar PV Market

The European Parliament has adopted the final version of the “Regulation on Prohibiting Products Made with Forced Labour.” This new EU law will ban all products, including components, that are proven to be made using forced labor.

This regulation could significantly impact the solar photovoltaic (PV) market, as a large portion of the materials used in solar panels comes from China’s Xinjiang province, where forced labor is a known issue. Xinjiang produces about one-third of the world’s polysilicon, a key material for solar modules. According to the 2023 Global Slavery Index, solar panels are one of the top products at risk for forced labor among G20 imports.

The only step left is formal approval from the Council of the EU, which consists of the governments of EU member states. This approval is expected soon, which means the regulation could be published in the Official Journal of the EU later this year.

However, the legislation will take three years to become fully applicable. A key part of the regulation is the creation of a Database of Forced Labor Risk Products or Areas, which will be implemented sooner. It is anticipated that Xinjiang will be identified as a high-risk area for forced labor, helping to prevent the import of solar PV modules made with polysilicon sourced from there. This measure could help create a more level playing field for European solar PV manufacturers.

Jens Holm, the Sustainability Policy Director at ESMC, emphasized the importance of swiftly implementing the forced labor ban and the database. He noted that the green transition and solar energy expansion should not involve violations of human and labor rights. He hopes that this legislation will help secure solar supply chains free from forced labor, and also sees it as a unique opportunity to bring solar PV manufacturing back to Europe.