With the European Commission poised to ban products with supply chains tainted by forced labor, the solar-energy industry is lighting the way for other businesses to follow.
After more than a year in development, the trade body SolarPower Europe, working in partnership with Solar Energy UK, has launched the Solar Stewardship Initiative (SSI), a concrete plan to reinforce a responsible, transparent, and sustainable solar value chain.
After a consultation period, solar-energy companies will be invited to sign up for assessment prior to the full roll-out of the assurance scheme next year.
After this week’s announcement, one of the first companies to step forward to cheerlead the trade initiative was Chinese renewable-energy giant Trina Solar.
“We’ve been protecting our supply chain since 2014,” said Margarita Yao, general counsel and vice-president for legal affairs at Trina Solar. “We want to make a difference and because we have always done things differently, we think we can help.”
The EC’s ban, which is expected to enter law next year, would apply to all products from anywhere in the world, including the European Union, where forced labor has been used at any stage of production, harvest or extraction.
In a move that mirrors the American system of “withhold release orders” (WROs) to stop products entering the US that have been flagged as having been made using forced labor, the 27 EU member states will be responsible for detection and enforcement and must respond to complaints by non-governmental organizations and other concerned parties.
If there is a strong likelihood of forced labor having been used, member states will be able to seize products and ban imports.
With shoes, clothes and commodities such as timber, fish and cocoa among the products most likely to be affected, the solar industry has been working hard behind the scenes to ensure the new law has little to no impact on the renewable-energy market, which is enjoying an unprecedented boom in the wake of climate concerns, the cost-of-living crisis and the effect of the Ukraine war on Europe’s gas supplies from Russia.
To this end, SolarPower Europe and Solar Energy UK have launched the first stage of the SSI to “produce industry standards for improved traceability and full disclosure of environmental and social aspects in the supply chain to ensure that the solar sector remains a champion of sustainability.”
A spokeswoman for the initiative said, “The global solar market is growing exponentially. It took around a decade for worldwide solar capacity to reach 1 terawatt, from 100 gigawatts in 2012. In just three years, SolarPower Europe predicts global solar to more than double to 2.3TW in 2025.
“Right now, like many sectors, it is difficult to visualize all the links in the European solar supply chain. This sector-wide project aims to enhance end-to-end transparency and sustainability across the solar supply chain, with the primary objective of monitoring social and environmental impacts along that supply chain,” she said.
“Comprehensive supply-chain monitoring will make it possible to trace the origins of materials used in solar components. This will mean we know, with a high level of certainty, that EU solar products comply with international sustainability and labor standards, no matter their country or region of origin.”
Walburga Hemetsberger, chief executive of SolarPower Europe, added: “The solar sector must grow exponentially to fight climate change, and with growth comes responsibility. Today the solar sector is showing how seriously we take that responsibility.
“Cutting through a complex issue, we are presenting a clear timeline towards a solution that consumers can trust – an assurance scheme that their solar products are made under the highest human-rights and sustainability standards.”
Given the complexity of global supply chains, creating a benchmark system requires industry expertise, which is why Trina Solar has offered its services in the first trials of the programme that will eventually create industry standards.
“We’re the only Chinese company that has consistently passed WRO inspections with US customs, and so we have the experience to help and assist government authorities and trade bodies and show what is actually doable,” Yao said.
“Many people simply don’t understand the complexities involved or the extensive documentation needed to audit every aspect of a product to satisfy ESG [environmental, social and governance] criteria. So it’s important to offer an insight into the practical side of the industry.
“Right now, there is no set standard for the industry and no system in place to form one, so SolarPower Europe is taking the initiative and looking to see what is possible in order to create the gold standard. It’s an initiative we applaud and are happy to assist with.”
While Trina Solar has been a vocal supporter of the proposed supply-chain monitoring program, the company’s motives are not totally altruistic – cleaning up the renewable-energy industry comes at a cost.
“Our solar panels have always been at the higher end of pricing, commercially,” Yao admitted. “You can buy cheap, but then you don’t know the quality of your product or, more importantly, the source.
“So yes, you can buy cheaper, but the rules are changing, and with our products you know your supply chain is assured – that there won’t be a sudden increase in price or that you find your goods stopped by customs for months before they are shipped back to the manufacturer.”