China has a unique opportunity to accelerate decarbonization in its massive textile and apparel sector, according to a new research report by the Apparel Impact Institute (Aii) and Development Finance International (DFI). The study finds that China — as the world’s largest textile manufacturer — can potentially reduce sector emissions by 50% by 2030 if the right financial, policy, and collaborative steps are taken.
The report highlights China’s renewable energy leadership, extensive industrial parks, and broad supplier base (over 40,000 firms) as major strengths that could make decarbonization practical and scalable. It estimates that approximately US $40.8 billion in investment will be needed to support clean technologies, energy transitions, and low-carbon planning across factories and parks.
Experts behind the study emphasize that financing and policy support must go hand-in-hand with practical implementation on the ground. This includes accessible capital options, blended financing models, deployment-linked grants, and expanded local technical assistance to help even small manufacturers adopt low-emission practices.
Market Impact:
• If successfully implemented, China’s leadership in decarbonization could set a global benchmark for textile sustainability.
• Reducing emissions would decrease operational risks associated with climate regulations and improve export competitiveness.
• Accelerated decarbonization could also drive innovation in green manufacturing, renewable energy use, and sustainable supply chains.
Overall, the research suggests that combining policy guidance, targeted finance, and coordinated industry action could unlock significant environmental and economic benefits for China’s textile sector — and potentially influence global apparel industry standards.
05:52 PM, Jan 22