TCF POST Report
Despite ongoing global efforts, the Textile, Clothing, and Footwear (TCF) industry is failing to decarbonize at the speed or scale required to meet international climate goals. In its recent analysis, State of the Industry 2026: Decarbonization Progress in the Apparel, Footwear & Textiles Industry, Cascale—a global nonprofit alliance of retailers, brands, manufacturers, governments, academics, and NGOs—reported that industry emissions are rising. This trend is driven by persistent coal dependence and a lack of significant renewable energy adoption. Using the Effective Energy Carbon Intensity (EECI) metric, Cascale found that rising production volumes have consistently outpaced marginal efficiency gains in recent years.
Comparative Performance of Key Asian Nations
Asia hosts the world’s most significant textile and apparel production facilities, yet performance varies significantly across the region based on national energy mixes and production processes.
| Country | Tier 1 Coal/Thermal Dependency | Tier 2 Coal/Thermal Dependency | Primary Energy Challenge |
| China | 23% | 71% | High coal usage in Tier 2 |
| India | 13% | 55% | Reliance on biomass |
| Vietnam | 33% | 41% | Grid electricity intensity |
| Bangladesh | 6% | 9% | High reliance on gas |
| Pakistan | 14% | 6% | Limited electrification |
| Sri Lanka | 4% | 6% | High reliance on biomass |
- China: As the largest producer, China’s heavy reliance on coal—particularly in Tier 2 facilities where it accounts for 71% of the thermal energy mix—remains a primary driver of high global emission levels.
- India: While Tier 1 facilities report lower EECI values, this is largely attributed to high biomass usage, which creates uncertainty regarding actual emissions and lifecycle carbon impact.
- Vietnam: Despite widespread electrification in Tier 1, progress is hampered by the low share of renewables in the national electricity grid (5% in 2024).
- Bangladesh & Pakistan: Both nations show a heavy reliance on gas in Tier 1, though both have successfully maintained coal dependency below 10%.
- Sri Lanka: Although it ranks lowest in EECI among the countries analyzed, this is heavily tied to significant biomass reliance, requiring further investigation into the sustainability of these resources.
Critical Barriers to Decarbonization
Coal accounts for 31% of industry-wide energy consumption with no meaningful year-over-year decline. In Tier 2 (fabric and dye houses), which is highly heat-intensive, coal accounts for 40% of global energy consumption. While more facilities are reporting renewable energy usage, renewables account for only 2% of total industry energy consumption—a figure that remained static between 2023 and 2024.
Regional Highlights
- Bangladesh: The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) “Sustainability Vision 2030” has established ambitious goals, including a 30% reduction in greenhouse gas emissions and a 20% renewable energy target. The government’s 2025 Renewable Energy Policy provides tax incentives to support these transitions.
- China & Vietnam: In both countries, a small number of large, energy-intensive facilities are responsible for a disproportionate share of total emissions. Strategic focus in China is centered on shared infrastructure, such as industrial parks, while Vietnam is prioritizing the transition to high-value, sustainable production.
Conclusion: A Shift in Strategy
The Cascale report concludes that shifting production geography is not a viable strategy for true industrial decarbonization. Instead, brands must move beyond country-level averages to engage in long-term, equitable partnerships with Tier 2 manufacturers. Facility-level upgrades, supported by initiatives such as the Manufacturer Climate Action Program (MCAP), are the most effective path toward setting science-aligned targets and implementing concrete decarbonization roadmaps. Ultimately, the industry must transition away from its structural reliance on coal and prioritize the accelerated adoption of renewable energy.
