China is well placed to drive a rapid reduction in emissions across the global apparel sector, with the potential to cut sector emissions by 50% by 2030, according to a new report.
The report, Landscape and Opportunities for the Decarbonization of China’s Textile and Apparel Manufacturing Sector, published by the Apparel Impact Institute in collaboration with Development Finance International Inc., examines the financing, policy and implementation landscape for decarbonising China’s textile and apparel manufacturing base.
It highlights China’s renewable energy leadership and dominant role in global apparel production as key enablers, noting that more than 40,000 suppliers in the country already have the scale and operational data needed to take immediate action. The report also points to China’s extensive industrial park network, with more than 11,000 enterprises operating across over 1,300 textile-focused parks, as a platform for shared governance, bundled projects and lower transition costs.
To unlock this potential, the report calls for stronger collaboration across the value chain to build awareness, planning tools, technical capacity and access to capital. It estimates that US$40.8 billion in investment will be required to halve emissions from China’s textile and apparel sector by 2030.
While international finance institutions can provide funding and technical support, uptake has been limited due to complex requirements and higher interest rates. The report recommends expanding blended finance models, deployment-linked grants and local technical assistance, alongside embedding low-carbon planning into core business strategies. It also stresses the importance of sector-wide coordination and using industrial parks as hubs for shared infrastructure and scalable decarbonisation solutions.
“China’s textile industry has the scale, capability and growing alignment to lead fashion’s next climate chapter,” said Dave de la Questa, Head of Asia Operations at Development Finance International. “The building blocks are already here. The next step is connecting finance, policy and industry so every facility can take part in the transition.”
Lewis Perkins, President and CEO of the Apparel Impact Institute, said that financing and policy frameworks must be matched with practical, inclusive conditions on the ground. “Scaling local finance, supporting supplier readiness and building collaborative infrastructure will be critical to delivering real-world emissions reductions,” he said.
