Authors: Ali Hasanbeigi and Cecilia Springer
The Urgent Need to Decarbonize the Textile Industry
The textile and apparel industry, a cornerstone of global manufacturing, is under increasing pressure to decarbonize. Accounting for approximately 2% of global greenhouse gas emissions annually, the sector’s reliance on fossil fuel-based thermal energy for processes like steam production and thermal oil heating is a significant contributor to its carbon footprint. As demand for sustainable apparel surges, the race is on to establish the world’s first zero-carbon emissions textile plant. A key contributor to this race is electrification, with technologies like electric boilers and heat pumps offering a viable, immediate path to decarbonization. Drawing from the insights of the Low-Carbon Thermal Energy Roadmap for the Textile Industry by Global Efficiency Intelligence and Apparel Impact Institute, this blog explores how these technologies, available today, can transform textile manufacturing into a zero-emissions operation, especially when paired with renewable energy procurement.
Who Will Have the First Zero-Carbon Wet-Processing Textile Plant? Finished fabric production is energy-intensive, with steam and hot oil heating accounting for 50-60% and 30-40% of fuel use in a typical wet-processing plant (with pre-treatment, dyeing, and finishing processes for fabric), respectively. Traditionally, these processes rely on coal, natural gas, or other fossil fuels, which release significant amounts of CO₂ emissions. The Low-Carbon Thermal Energy Roadmap underscores that as global apparel demand grows, the industry must shift away from these carbon-heavy sources to meet climate goals. Electrification, supported by renewable energy (RE), emerges as the most promising long-term solution, offering both environmental and economic benefits when evaluated through a levelized cost of heating (LCOH) approach that accounts for all capital (CAPEX) and operational (OPEX) expenditures over the technology’s lifetime.
Electrification Technologies: Ready Today
The good news? The tools to decarbonize textile plants are not futuristic technologies—they’re here now. The roadmap highlights two electrification technologies ready for immediate adoption:
Electric Boilers: With efficiencies up to 99% and widespread commercial availability, electric boilers can replace fossil fuel-fired systems seamlessly. When powered by renewable electricity, they slash CO₂ emissions dramatically. Their low capital expenditure (CAPEX) makes them an accessible entry point for manufacturers.
Heat Pumps: Steam-generating heat pumps, capable of reaching temperatures up to 170°C, offer even greater efficiency gains. Their high coefficient of performance (or COP) means they can reduce energy use substantially in a typical plant compared to conventional boilers. Even with carbon-intensive grids, their efficiency delivers emissions reductions, making them a game-changer.
The report’s techno-economic modeling reveals that these technologies are not just environmentally sound, they are also economically competitive. Using the LCOH metric, which factors in capital, energy, and operating costs over a technology’s lifetime, heat pumps consistently outperform fossil fuel-fired boilers in countries like China and India. Electric boilers, while facing higher near-term energy costs due to electricity prices, become cost-competitive by 2035 in many regions as renewable energy becomes cheaper and carbon pricing penalizes fossil fuels. This lifetime cost approach demonstrates that electrification isn’t a distant dream—it’s a practical, adoptable strategy today.
Sweet Spots for Electrification: Where the Race is Heating Up
While electrification can work globally, certain regions are poised to lead the charge due to advanced corporate renewable energy procurement mechanisms like Power Purchase Agreements (PPAs). In Asia, India, China, and Vietnam stand out as sweet spots. China’s abundant renewable energy supply and supportive policies, India’s expanding RE market, and Vietnam’s recent regulatory push to establish corporate RE procurement create growing opportunities for textile plants to go zero-carbon. In Europe, Germany, Italy, and Spain are frontrunners, leveraging mature PPA frameworks and ambitious decarbonization targets. These countries exemplify how access to stable, low-cost renewable electricity can accelerate the shift from fossil-based steam generation to electrified systems.
The roadmap’s projections are striking: all studied countries can achieve emissions reductions with electrification in the near future, especially with industrial heat pumps.
First-Mover Advantages: Why Acting Now Pays Off
Textile facilities and apparel brands that lead the charge in electrifying heating stand to reap significant benefits, positioning themselves as pioneers in a rapidly evolving industry. The Low-Carbon Thermal Energy Roadmap and industry trends highlight several compelling advantages for first movers:
Market Leadership and Brand Differentiation: Creating the first zero-carbon garment or being the first zero-carbon textile plant or brand to adopt electrified heating creates a powerful narrative. Consumers increasingly prioritize sustainability, with studies showing that many consumers are willing to pay more for eco-friendly products. First movers can capture this growing market, enhancing brand loyalty and attracting premium retailers.
Cost Savings Over Time: While initial investments in electric boilers or heat pumps may require upfront capital, their lower operating costs, especially for heat pumps when paired with renewable energy PPAs, yield long-term savings. The roadmap’s LCOH analysis shows heat pumps can save up to 20% on energy costs compared to fossil fuel systems by 2030 in key regions. Early adopters lock in these savings before competitors.
Regulatory and Carbon Price Advantage: As governments impose stricter carbon regulations and pricing, such as the EU’s Carbon Border Adjustment Mechanism or China’s National Emissions Trading System, electrified plants avoid penalties and compliance costs. First movers future-proof their operations, gaining a competitive edge as fossil fuel-based competitors face rising costs.
Access to Green Financing: Financial institutions are increasingly offering green loans and bonds for sustainable projects. Facilities that electrify early can tap into these funds, reducing CAPEX burdens and improving cash flow. For example, programs like the IFC’s green financing initiatives prioritize low-carbon industrial upgrades.
Supply Chain Influence: Apparel brands that partner with electrified plants can drive sustainability across their supply chains, meeting Scope 3 emissions targets. Early-adopting textile plants gain leverage to negotiate favorable terms with global brands that prioritize low-carbon suppliers.
By acting now, first movers not only contribute to global climate goals but also secure a strategic advantage in an industry where sustainability is becoming a core competitive factor.
Voices from the Field: Insights from Experts
The potential of electrification isn’t just theoretical, and it’s gaining traction among industry leaders. In a recent Forbes interview, Dr. Ali Hasanbeigi and Dr. Cecilia Springer emphasized that heat pumps are ready for adoption now, urging the fashion industry to embrace its “heat pump era” to cut emissions and costs. Similarly, in a Q&A with Action Speaks Louder, they outlined a practical roadmap for low-carbon textile manufacturing, highlighting electrification’s role as the cornerstone of a net-zero future. These insights reinforce that the technology and knowledge exist—it’s a matter of action.
A Global Call to Action
While the Low-Carbon Thermal Energy Roadmap focuses on five key countries (China, India, Vietnam, Bangladesh, and Indonesia), its findings are a blueprint for the world. Electrification’s competitiveness hinges on renewable energy access, making corporate RE procurement a critical enabler. Mechanisms like PPAs, green tariffs, and onsite generation provide textile plants with the tools to secure low-emission electricity at competitive and stable costs, leveling the playing field against fossil fuels. Beyond the sweet spots, any region with a decarbonizing grid or supportive policies can join the race.
The roadmap also offers a phased approach: pilot projects by 2030, deployment by 2035, and full-scale electrification by 2040. Textile manufacturers can start small by swapping out aging coal boilers for electric ones, while apparel brands fund pilots and advocate for RE policies. Policymakers, meanwhile, must modernize grids and incentivize clean energy adoption.
Crossing the Finish Line
The race to the first zero-carbon emissions textile plant is not just about technology—it’s about vision and execution. Electric boilers and heat pumps, available and adoptable today, offer a clear path forward. Their competitiveness with fossil-based systems, proven through levelized cost analysis, makes them a smart investment for the future. Whether it’s a facility in India, China, Vietnam, Spain, Germany, or Italy, the winner will be the one that pairs these technologies with renewable energy and bold action.
The clock is ticking. Who will cross the finish line first? The answer lies in the hands of those willing to act boldly and act now.
