BURNING QUESTIONS
against the US dollar following the United Kingdom’s vote to leave the European Union. As a result of the weakening of the pound, UK renewable energy project finance could become more expensive in the short term. There will also be pressure on supply chain costs as, generally, UK renewable investors borrow in sterling and import equipment priced in Euros, from EU suppliers. As a result, we may see an increase in capital expenditure costs for renewable energy projects and a decrease in investors’ returns. That said, the impact is likely to be greater for small domestic projects, as larger projects are more likely to be hedged against currency fluctuations. Conclusion The extent to which Brexit will impact the UK renewable sector remains uncertain, as the precise terms of any UK exit strategy are negotiated. Economically, the Brexit vote has already caused great upheaval, with the weakening of the pound and Standard & Poor’s downgrading of the United Kingdom’s AAA rating. Politically, the future is similarly unknown, as leadership contests are fought and resignations abound. Such uncertainty is likely to have a significant impact on investor confidence in an industry which thrives on stability and certainty, and could lead to a delay in investment decisions. This, coupled with questions over the United Kingdom’s adherence to EU targets on renewable generation and future commitment to a low-carbon future following Brexit, paints a less-than-attractive picture for the renewable energy sector in the United Kingdom. That said, there is unlikely to be an immediate diversion from
The Modern Slavery Act: transparency in UK supply chains Question Does the recently enacted Modern Slavery Act go far enough in assisting migrant domestic workers in Britain? Answer On 29 October 2015 the Modern Slavery Act came into force in England and Wales. The act consolidates previous law on slavery and human trafficking. the United Kingdom’s current energy policy and large investors, such as DONG Energy, remain committed to the United Kingdom. It must also be noted that the United Kingdom’s energy policy is more strongly defined by the Climate Change Act 2008 than by any EU directive, and the Fifth Carbon Budget reaffirms the importance of de-carbonisation to the UK government. In addition, there could be new opportunities for the renewable sector if the United Kingdom is no longer bound by EU regulation on state aid and environmental constraints. However, it is debatable to what extent the United Kingdom would adopt similar regulation outside of the EU framework. In conclusion, while UK renewables have been buffeted from a number of directions following Brexit, they have not been blown off course for the moment and there are potential bright spots on the horizon. Tim Williams and Adam Blythe are trainee solicitors at Watson Farley & Williams LLP
However, some argue that the act does not offer enough support and protection to vulnerable and abused migrant domestic workers. Modern slavery There are numerous forms of slavery which are still in existence today. This includes bonded labour, child slavery, early and forced marriage, forced labour, descent-based slavery and trafficking. Many forms of slavery involve more than one of the above elements or forms listed. From forced labour in agriculture to sweatshops producing low-cost commodities for global supply chains, modern slavery is prevalent in many larger organisations’ supply chains. The Modern Slavery Act seeks to highlight, firstly, those organisations that do not take responsibility for every step of their production process and, secondly, address the action that such organisations are taking to address modern slavery. It is envisaged that organisations which should be doing more in this respect will be shamed and exposed by consumers and campaigning organisations alike. The statement The Modern Slavery Act requires commercial organisations operating within the United Kingdom – and which have global turnovers of £36 billion and above – to publish slavery and human trafficking statements each financial year ending on or after 31 March 2016. The statement must state either that the organisation has taken steps to address slavery and human trafficking or that it has taken no such steps. The statement must be approved by the board, signed by a director and published on the company’s website. It must be published on organisations’ websites with a link
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