The fashion industry emissions increase 14%, marking a significant setback for the apparel sector after emissions had declined slightly in 2022. According to the Apparel Impact Institute (Aii), apparel-sector greenhouse gas emissions increased by 7.5% in 2023 and another 6.3% in 2024, the latest year for which data is available. The 2023 increase was the first significant rise since 2019, with sector emissions reaching about 944 million tonnes, nearly 2% of global greenhouse gas emissions.

Polyester Production Emerges as a Major Emissions Driver

Aii links the recent increase largely to rising global fiber production, with polyester playing a particularly important role. Virgin polyester remains cheaper and more readily available than recycled alternatives, making it difficult for manufacturers to shift materials at the pace required for meaningful emissions reductions. The continued growth of fossil-fuel-based fibers therefore remains a major challenge for the industry’s climate ambitions.

Cost is also influencing decisions around energy and manufacturing. Kurt Kipka, Aii’s director of impact, has highlighted the economic barriers facing companies attempting to decarbonize their supply chains. At the same time, rising energy prices are making renewable energy generation and on-site battery storage increasingly attractive for manufacturers looking to reduce both emissions and exposure to volatile energy costs.

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Fashion Industry Emissions Increase 14% Despite Climate Commitments

There has been considerable growth in corporate climate commitments.

• The number of fashion companies that had adopted science-based climate targets or committed to establishing them rose from 100 at the end of 2021 to around 700 by June 2025.
• Aii also found that several major brands have achieved double-digit emissions reductions and increased the proportion of recycled fibers used in their products.

However, the industry’s progress remains uneven.

• Inflation, changing political priorities and difficult market conditions have caused some businesses to scale back previously announced environmental commitments.
• This creates a growing gap between long-term climate targets and the immediate financial pressures facing brands and manufacturers.

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Rising Emissions Could Hit Fashion Industry Profits

The fashion industry emissions increase 14% problem is increasingly becoming a financial issue as well as an environmental one. Separate Aii research estimates that apparel companies could face a profit decline of up to 34% by 2030 because of supply-chain disruptions and higher operating expenses unless businesses move quickly to reduce carbon pollution. Higher energy and material costs could further increase pressure on already tight margins.

For manufacturers, the challenge is therefore shifting from simply setting sustainability targets to investing in practical changes across production. Renewable electricity, energy efficiency, cleaner manufacturing processes, improved thermal systems and greater use of lower-carbon or recycled materials could help reduce emissions while limiting exposure to future operating costs. The latest Aii data suggests that delaying those investments could become increasingly expensive for the fashion industry.

Source: Bloomberg

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