China Positioned to Lead Apparel Industry Decarbonization Push

New research highlights China’s unmatched potential to halve textile sector emissions by 2030.

Aii and DFI’s latest report outlines financing pathways, policy dynamics and collaborative structures needed for China to drive large-scale apparel decarbonization.

A new research report has identified China as one of the most pivotal players in global efforts to curb emissions from the textile and apparel industry. According to Landscape and Opportunities for the Decarbonization of China’s Textile and Apparel Manufacturing Sector, released by Apparel Impact Institute (Aii) in partnership with Development Finance International Inc. (DFI), China holds a uniquely powerful opportunity to accelerate the sector’s 2030 decarbonization goals.

As the world’s largest textile manufacturer, China brings together two key advantages: an expansive apparel production footprint and a strong foundation of climate policies and clean energy infrastructure. The report notes that more than 40,000 apparel and textile suppliers across the country already operate at a scale that enables rapid implementation of emissions-reduction strategies. China’s network of over 1,300 textile industrial parks—home to more than 11,000 enterprises—further strengthens its potential by offering shared governance structures and collective project deployment that can lower transition costs.

The analysis underscores that achieving a 50% emissions reduction by 2030 will require US$40.8 billion in investment across China’s textile and apparel manufacturing sector. While international financial institutions provide both capital and technical expertise, uptake remains modest due to high eligibility barriers and elevated interest rates. To bridge this gap, the report recommends a mix of innovative financing tools such as blended-finance mechanisms, deployment-linked grants, and greater access to localized technical support. It also urges companies to embed low-carbon strategies into core business planning and encourages sector-wide coordination through industrial park platforms—critical for scaling pilots, improving efficiency, and enabling cost-sharing.

“China’s textile industry has the scale, capability, and growing alignment to lead fashion’s next climate chapter. The building blocks are already here,” said Dave de la Questa, Head of Asia Operations at Development Finance International, Inc. “The next step is connecting them — linking finance, policy, and industry so that every facility, no matter its size, can participate in the transition.”

Lewis Perkins, President and CEO of Apparel Impact Institute, added: “While financing and policy frameworks are essential, they only work when paired with practical, scalable, and inclusive on-the-ground conditions that give manufacturers confidence and clarity. The report offers a clear call to action: scale local financing, support supplier readiness, and develop an infrastructure of collaboration that will deliver tangible results.”

The full report, Landscape and Opportunities for the Decarbonization of China’s Textile and Apparel Manufacturing Sector, is now available.