The global energy crisis—sparked by geopolitical tensions, fossil fuel price volatility, and climate change—has placed immense pressure on energy-intensive industries like textiles. As prices soar and energy security becomes increasingly uncertain, textile manufacturers are being forced to re-evaluate traditional production models that rely heavily on fossil fuels and centralised power grids.

The textile and apparel sector is amongst the most resource-intensive industries in the world, accounting for approximately 6–8 per cent of global energy consumption and contributing significantly to greenhouse gas emissions. From fibre processing and dyeing to finishing and distribution, energy use permeates every stage of the textile supply chain.

Today, a paradigm shift is not only urgent but inevitable. Textile producers must adopt low-energy technologies, decarbonise their operations, and rethink their manufacturing footprints. This article explores the drivers of the current energy crisis, how it impacts textile production, and innovative strategies the industry can adopt to transition towards a low-energy, climate-resilient future.

Understanding the Energy Crisis in Context
The energy crisis has multiple overlapping causes that directly impact the textile sector:

  • Geopolitical conflicts, such as the war in Ukraine, have disrupted oil and gas supply chains and destabilised energy markets.
  • Climate change has affected hydroelectric and thermal energy supplies in regions experiencing droughts and heatwaves.
  • Inflation and currency devaluation in developing countries, home to many textile producers, have exacerbated the cost of imported fuels and machinery.
  • Global decarbonisation policies are pushing for a rapid transition away from fossil fuels, often outpacing infrastructure readiness.

As a result, energy-intensive processes like dyeing, drying, and heating are becoming financially unsustainable in many regions.

Where Energy Is Consumed in the Textile Supply Chain
To address the energy challenge effectively, it is essential to understand where energy is used in textile manufacturing:

1. Spinning and Weaving: These processes consume significant electricity, especially when running 24/7 operations using older machinery.

2. Wet Processing (Dyeing, Washing, Finishing): This is the most energy-intensive stage, often requiring high-temperature water, steam, and prolonged machine operation.

3. Drying and Curing: Requires heat generation, typically from coal, natural gas, or oil.

4. Transportation and Logistics: Fossil fuel consumption remains high due to long-distance supply chains.

5. Retail and Warehousing: While less significant, energy use in lighting, climate control, and IT infrastructure also adds up.

A comprehensive energy strategy must target both direct and indirect energy use throughout these stages.

Strategies for a Low-Energy Future

1. Transitioning to Renewable Energy Sources: Adopting renewables such as solar, wind, and biomass is perhaps the most impactful strategy.

  • On-site solar installation (rooftop or ground-mounted) helps offset grid dependency.
  • Biomass boilers can replace fossil fuels in steam generation.
  • Renewable energy Power Purchase Agreements (PPAs) enable long-term, stable pricing for electricity.

Case Example: Arvind Limited in India has committed to 100 per cent renewable electricity by 2026 and already sources 40 per cent of its power from wind and solar.

2. Implementing Energy-Efficient Machinery and Processes: Replacing outdated machinery with energy-efficient alternatives can reduce power usage by up to 30–40 per cent.

  • Low Liquor Ratio (LLR) dyeing machines cut water and energy requirements.
  • Heat recovery systems reuse thermal energy from hot wastewater or exhaust air.
  • Digital printing significantly reduces the energy used in traditional dyeing processes.

Actionable Tip: Audit and benchmark current energy performance across all equipment. Set clear Key Performance Indicators (KPIs) for reduction.

3. Reimagining Fabric Finishing: New low-energy finishing technologies are gaining traction.

  • Plasma finishing and ultrasound dyeing reduce both time and temperature requirements.
  • Supercritical CO₂ dyeing eliminates water and drastically reduces heat needs.
  • Cold pad-batch dyeing is a low-temperature alternative to conventional processes.

These innovations are not just greener, they often increase speed and consistency, offering cost savings in the long run.

4. Localised and Shortened Supply Chains: Long-distance shipping adds to energy consumption and cost volatility. Brands and manufacturers are exploring nearshoring and reshoring to localise production and distribution.

Benefits

  • Reduced fuel consumption and emissions
  • Lower lead times and energy use in warehousing
  • Greater agility in response to energy market shifts

Case in Point: European brands are increasingly sourcing fabrics from Türkiye and North Africa instead of Asia to minimise energy and transport dependencies.

5. Digitalisation for Energy Monitoring and Optimisation: Smart factory technologies can optimise energy use in real time.

  • IoT-based sensors track machine performance and highlight inefficiencies.
  • AI-driven dashboards recommend energy-saving adjustments.
  • Predictive maintenance reduces downtime and avoids energy waste from malfunctioning systems.

Example: Factories adopting Industry 4.0 tools have reported up to 20 per cent energy cost reductions within one year of implementation.

6. Circular Business Models That Reduce Energy Demand: Circular models reduce overall production, and by extension, energy use.

  • Resale and repair reduce the need for new garments.
  • Rental and subscription models extend product lifespans.
  • Fibre-to-fibre recycling can use less energy than virgin fibre processing when optimised.

Shifting from a volume-based growth model to a value-based one offers long-term energy resilience.

Policy and Finance: Enablers of Low-Energy Innovation
For many textile companies, especially SMEs, high upfront costs remain a barrier to energy transition. Government support and new financing models are critical.

Incentives to Watch

  • India’s PLI Scheme: Promotes investment in energy-efficient technical textiles.
  • EU Green Deal: Includes provisions for low-carbon manufacturing and energy performance standards.
  • Blended Finance Models: Combine grants, loans, and private investment to de-risk innovation adoption.

Energy audits and public reporting (e.g., through CDP or Higg Index) are also gaining regulatory traction, compelling companies to demonstrate energy performance.

Challenges on the Road to Low-Energy Production
Despite clear benefits, multiple barriers persist:

  • High CapEx: Upfront investment in renewables or new machinery can be prohibitive.
  • Lack of Infrastructure: In many developing regions, clean energy grids and equipment suppliers are still emerging.
  • Fragmented Supply Chains: Sourcing from numerous third parties makes unified energy strategy difficult.
  • Skills Gap: Lack of trained technicians to operate and maintain advanced equipment.
  • Short-Term Focus: Pressure for low-cost, fast-turnaround production can disincentivise long-term energy planning.

The Role of Brands and Retailers
Brands and retailers hold significant leverage in accelerating the industry’s shift towards low-energy textile production. Their decisions influence not only consumer demand but also supplier behaviour, investment priorities, and innovation pathways. Here is how they are, and should be, stepping up:

1. Setting Ambitious Energy and Emissions Target: Major apparel brands are now setting science-based targets (SBTs) and committing to net-zero emissions. While these targets often focus on Scope 3 emissions (including supplier energy use), enforcing them requires rigorous tracking and supplier engagement. For example:

  • H&M Group has committed to becoming climate-positive by 2040 and includes energy use metrics in its supplier evaluation.
  • Nike requires tier-1 and tier-2 suppliers to meet strict energy reduction targets as part of its Supplier Climate Action Program.

By embedding energy performance in procurement contracts and vendor scorecards, brands send a strong signal that low-energy operations are non-negotiable.

2. Co-Investing in Energy Efficiency and Renewables: Recognising that many suppliers, especially SMEs, lack the capital to upgrade machinery or install solar systems, some brands are co-financing projects or facilitating low-interest loans. Examples include:

  • Levi Strauss & Co. launched its ‘Collaborative Factory Investment Program’ to help suppliers invest in energy-saving technologies.
  • VF Corporation offers financing and technical support through its Supplier Sustainability Program, enabling upgrades to lighting, boilers, and HVAC systems.

This shared responsibility model ensures that energy transitions do not stall due to financial constraints on the manufacturing side.

3. Innovating Product Design to Reduce Energy Use: Retailers can influence upstream energy consumption through smarter product design. Lightweight, undyed, or modular garments often require fewer resources during production and finishing. Examples:

  • Patagonia integrates circular design thinking to reduce energy at end-of-life stages.
  • Brands using digital design and 3D prototyping reduce the need for multiple physical samples, saving energy in sampling and logistics.

In essence, low-energy production starts at the design board, not just on the factory floor.

4. Incentivising Transparency and Accountability: Brands are increasingly demanding transparent data from their supply chains. Through platforms like the Higg Index, ZDHC, or CDP, they gather energy usage, emissions, and efficiency metrics. In some cases:

  • Suppliers who report improvements get preferential treatment or priority sourcing status.
  • Retailers publish supply chain energy metrics in annual sustainability reports, holding themselves accountable to shareholders and the public.

This creates a virtuous cycle of performance, reporting, and reward.

5. Educating Consumers on Energy Impact: Retailers can also play a key role in shaping consumer behaviour:

  • Highlighting low-energy products via labels or in-store signage.
  • Offering garment care tips that reduce energy use during the consumer phase (e.g., washing cold, line drying).
  • Creating loyalty programmes or campaigns tied to sustainable energy initiatives.

By connecting the dots between purchasing habits and energy footprints, retailers can turn sustainability into a shared journey with customers.