A new report from the Apparel Impact Institute (Aii) and Development Finance International Inc. (DFI) states that China is in a strong position to accelerate decarbonization across its textile and apparel manufacturing sector.
The publication, Landscape and Opportunities for the Decarbonization of China’s Textile and Apparel Manufacturing Sector, highlights that China’s extensive renewable energy capabilities and its large manufacturing base create a significant opportunity for emissions reduction. With more than 40,000 suppliers and over 1,300 textile industrial parks housing 11,000+ enterprises, the country has the scale and infrastructure needed to roll out sector-wide climate action.
According to the report, achieving a 50% emissions reduction by 2030 will require US$40.8 billion in investment. While international financiers offer support, the uptake among Chinese suppliers remains limited due to procedural complexities and higher borrowing costs.
The study recommends expanding accessible financing mechanisms—such as blended finance and deployment-linked grants—and strengthening local technical assistance. It also stresses the importance of integrating low-carbon planning into core business strategies and using industrial parks as hubs for shared infrastructure, coordinated planning, and replication of proven pilot projects.
DFI’s Head of Asia Operations, Dave de la Questa, noted that China already has the foundational elements needed for large-scale transition, calling for stronger alignment between finance, policy, and the industry. Aii President and CEO Lewis Perkins emphasised that effective policy and funding must be backed by practical conditions on the ground to build supplier confidence.
The full report, which maps China’s decarbonization landscape and potential pathways, is now available for industry stakeholders.