Decarbonizing textile energy systems: The race toward renewable industrial heat

The textile industry has made significant progress in renewable electricity adoption. However, thermal energy remains the sector’s largest decarbonization challenge. Processes such as dyeing, washing, drying, and finishing require large amounts of heat, much of which still comes from coal, gas, and other fossil fuels.

According to the Apparel Impact Institute (Aii) Low Carbon Thermal Energy Roadmap, thermal processes account for more than half of textile manufacturing emissions. However, recent data from March 2026 shows that global apparel emissions actually rose by 7.5 percent to 944 million tons of carbon dioxide equivalent because factories still rely on coal for 31 percent of their energy needs.

Three pathways are shaping the global transition

Fuel switching offers immediate emission reductions

Fuel switching remains the fastest near-term solution. Many factories are replacing coal with biomass or lower-carbon fuels while preparing for deeper decarbonization.

Youngone Corporation demonstrated this approach at its Vietnam facility by investing approximately $2.7 million in rice husk biomass boilers. The project eliminated coal consumption and reduced operational emissions significantly.

Electrification emerges as the long-term solution

Electrification is increasingly viewed as the most scalable pathway for thermal decarbonization.

High-temperature heat pumps, electric boilers, and thermal storage systems can provide the steam and hot water required for dyeing and finishing while reducing energy consumption.

When connected to renewable electricity, these technologies can virtually eliminate thermal emissions. Several textile manufacturers in Vietnam and China expanded industrial heat pump installations during 2025 and 2026, providing evidence that large-scale electrified textile production is becoming commercially viable.

Solar thermal gains momentum in sun-rich regions

Solar thermal technology is gaining traction in regions with strong solar resources, including India, Bangladesh, Pakistan, and parts of North Africa.

Unlike solar photovoltaic systems that generate electricity, solar thermal systems directly generate heat. This allows factories to reduce fossil fuel consumption for hot water and steam production while lowering operating costs.

Brands accelerate supplier decarbonization in 2026

H&M Group remains a leader in coal phaseout efforts and is on track to eliminate coal use across its supplier base by the end of 2026 through investments in heat pumps, thermal storage, and water-efficient technologies.

Adidas continues to support supplier decarbonization through boiler conversions and energy efficiency upgrades. More than 48 coal boilers have been replaced with lower-carbon alternatives.

Patagonia has introduced an innovative financing model through its Verified Carbon Intervention Unit (VCIU), helping reduce investment risks for suppliers. A boiler replacement project in Taiwan supported by the initiative is expected to cut around 27,500 metric tons of CO₂ emissions annually.

PVH Corp. continues its $10 million commitment to the Fashion Climate Fund to accelerate renewable energy adoption and coal elimination across supplier facilities.

Global transition pathways by sourcing region

Source: Analysis based on Apparel Impact Institute, Fashion Climate Fund, H&M Group Sustainability Reports, Adidas Sustainability Updates, Patagonia VCIU disclosures, and PVH Corp. climate commitments.

The industry now has a clear roadmap for thermal energy decarbonization. Fuel switching can deliver immediate gains. Solar thermal can reduce fossil fuel dependence in suitable regions. However, electrification powered by renewable energy offers the strongest long-term solution.