In the face of an unavoidable "low-carbon" challenge, several clothing companies have begun taking proactive steps. Among the earliest to act was Lihua Group, a garment manufacturer that invested 3 million yuan in technological upgrades in 2008. This move not only enhanced their competitive edge in low-carbon manufacturing but also saved nearly 2.8 million yuan annually in energy costs. In recent years, well-known brands like Seven Wolves, Nine Animal Husbandry Kings, Tigers, and Dragonfly Cards have also started investing in low-carbon product development, adopting what is now known as the "transformation style."
However, for the majority of small and medium-sized enterprises (99.6%) and non-public-owned enterprises (95%) in the textile and apparel industry, the path to low-carbon operations seems challenging due to limited financial resources, technological capabilities, and skilled labor.
Each company has its own approach to achieving low-carbon goals, and success largely depends on choosing the right strategy. Most companies fall into one of three main categories: energy-saving and emission reduction, adoption of renewable energy, or carbon capture technology. The first involves improving energy efficiency and reducing emissions through better practices and carbon trading. The second focuses on replacing fossil fuels with cleaner alternatives like wind or solar energy. The third deals with capturing COâ‚‚ emissions at the end of the process, which is currently more feasible for larger firms.
For most SMEs in the apparel sector, carbon capture may still be too distant, and transitioning to new energy sources requires time. At present, the most practical step is to focus on energy saving and emission reduction.
One business owner from a service company expressed frustration during an interview, saying, “Energy-saving and emission reduction is quite difficult. It's hard to track where the costs are, and the returns are uncertain.†This sentiment reflects the concerns of many in the industry.
Understanding the cost-benefit of energy-saving initiatives is the first major hurdle for garment companies looking to adopt a low-carbon strategy. According to a McKinsey study, about 75% of emission reductions can be achieved through existing technologies or non-technical measures, while around 25% may even result in negative costs over their lifecycle. More than a third of the 200+ low-carbon technologies available are considered "negative cost," meaning the benefits outweigh the investment. Energy-saving measures, in particular, offer the fastest return on investment.
To implement effective energy-saving and emission-reduction strategies, companies should focus on strengthening management systems, combining advanced technologies with the elimination of outdated methods, and integrating clean production with pollution control. Technological progress plays a key role in achieving these goals.
Currently, governments at all levels are encouraging textile and clothing companies to reduce energy use and improve management. This includes:
- Developing and adopting new equipment, processes, and technologies that save energy and protect the environment.
- Promoting resource recycling, cleaner production, and conducting audits to identify areas for improvement.
- Encouraging the development of energy-efficient, automated, and eco-friendly textile machinery.
- Establishing clear responsibility systems and incentives for energy conservation, setting standards for energy consumption per unit of product.
- Assigning dedicated energy managers to key facilities and implementing reporting systems for energy use.
- Promoting three-tiered energy and water measurement and management, reusing water and thermal energy, and improving efficiency to meet environmental standards.
- Encouraging cogeneration, centralized heating, and wastewater treatment in industrial clusters and parks.
- Supporting the reuse of wastewater and waste heat recovery to further cut down on energy use.
Experts estimate that, with improved technology and management, China’s textile and garment industry could reduce water and energy consumption by 10% to 15%. For most garment companies, the low-carbon journey is not easy, but it's definitely achievable.
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