China’s Textile Sector Faces $40.8 Billion Challenge to Halve Emissions by 2030
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China’s textile and apparel industry, producing over half of the world’s fibres and accounting for more than 30% of global apparel exports, is at a critical crossroads. According to the Apparel Impact Institute (Aii), the sector will need at least $40.8 billion in investment to reduce emissions by 50% by 2030. While the country has strong climate policies, green finance initiatives, and a push for clean energy, decarbonisation across factories remains uneven. The challenge is not only financial; technical know-how, planning tools, and alignment with evolving brand and regulatory requirements remain significant hurdles for manufacturers.
Aii identifies around 44,000 scaled enterprises, each with annual turnover above $2.85 million, as the most capable of delivering near-term reductions. Many are clustered in industrial parks, which provide shared infrastructure, governance models, and strategic platforms to reduce transition costs. Over 11,000 textile enterprises operate across 1,300+ industrial parks, with the new zero-carbon park initiative launched in 2025 offering a pathway to large-scale transformation. Key interventions include energy efficiency upgrades, renewable energy adoption, thermal energy recovery, and chemical innovation, while digital tools and factory-level diagnostics are helping manufacturers map emissions and optimize operations.
Despite domestic green finance availability, uptake is often limited, as local loans with lower interest rates remain preferred over international financing with stricter conditions. Aii stresses the need for diverse financing mechanisms, stronger alignment between brand expectations and supplier capabilities, expanded technical support, and robust data-sharing platforms. Coordinated efforts across brands, manufacturers, governments, and financial institutions are essential to turn climate ambitions into tangible emission reductions. With the right investments and collaboration, China could set a global benchmark for sustainable textile production, balancing economic growth with climate responsibility.
12:45 PM, Jan 02
Source : China’s Textile Sector Faces $40.8 Billion Challenge to Halve Emissions by 2030
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