UK bans state investment in solar panels linked to forced labour

LONDON (Reuters) - Britain will ensure its new state-owned energy company, Great British Energy, avoids the use of solar panels linked to suspected forced labour in China, the energy department said on Wednesday.

China produces over 80% of the world's solar panels. Research from the UK's Sheffield Hallam University says forced labour from among the country's Uyghurs is used to produce polysilicon, one of the panels' core components.

China denies any abuses and a foreign ministry spokesperson said in February that allegations of forced labour were among the "lies of the century". The Chinese Embassy in London did not respond to a request for comment on Wednesday.

Britain has a target to largely decarbonise its electricity sector by 2030 which will require a huge increase in renewable electricity, including an estimated tripling of solar power capacity.

GB Energy was launched in July with the aim of boosting investment in renewables to help meet those goals.

Following criticism from some lawmakers about the origin of many solar panels, the commitment on forced labour will be written into legislation currently going through parliament that fully establishes the state-backed company.

"Great British Energy will be an industry-leader in developing supply chains free of forced labour," junior energy minister Michael Shanks said in a statement.

The final wording of the legislation will need to be agreed by both houses of parliament before it becomes law.

Trade association Solar Energy UK said the change did not threaten Britain's ability to meet its 2030 net zero targets.

Imports to the U.S. are already banned from dozens of Chinese companies producing cotton apparel, auto parts and solar panels over alleged human rights abuses involving the Uyghurs, a mainly Muslim ethnic minority.

($1 = 0.7509 pounds)

(Reporting by Sarah Young and William James; Editing by Alison Williams and Aidan Lewis)