EU Net-Zero Initiative funding worth 7.56 million euros has been launched to support the development of a comprehensive decarbonisation roadmap for Sri Lanka’s textile and apparel industry, one of the country’s largest export-generating sectors.
EU Net-Zero Initiative aims to boost sustainability in Sri Lanka apparel industry
The initiative, launched under the European Union-funded Accelerating Industries’ Climate Response in Sri Lanka (AICRSL) project, seeks to help the country’s apparel industry transition toward lower carbon emissions while maintaining competitiveness in global markets increasingly focused on sustainability standards.
The programme is being implemented by UNIDO Sri Lanka in collaboration with the Ministry of Industry and Entrepreneurship Development, the Ministry of Environment, and the Ministry of Energy. Officials say the initiative will focus on developing a structured Net-Zero Roadmap for the textile and apparel sector through technical analysis, stakeholder engagement, and long-term sustainability planning.
Sri Lanka’s textile and apparel industry remains one of the most important pillars of the national economy. In 2025, the sector accounted for 40.7 percent of total merchandise exports and generated more than 5 billion US dollars in export earnings. Approximately 31.3 percent of these exports were directed to the European Union market, underlining the sector’s strong dependence on international trade access.
The EU Net-Zero Initiative comes at a time when global buyers and regulators are placing increased pressure on manufacturers to reduce carbon emissions, improve supply chain transparency, and adopt environmentally sustainable production methods. Industry experts say the ability to meet these evolving climate requirements will be critical for Sri Lanka’s long-term export competitiveness.
The European Union Delegation in Sri Lanka noted that the apparel industry is highly energy-intensive and requires significant decarbonisation efforts to align with future international sustainability standards. Officials stressed that the development of a clear Net-Zero Roadmap would help businesses measure emissions more effectively while identifying practical pathways for reducing environmental impact.
According to the EU Delegation, stricter sustainability expectations from global companies and supply chain partners are rapidly reshaping international trade practices. Supporting cleaner and more resilient manufacturing systems is therefore considered essential for preserving market access within the European Union.
The roadmap development process will include comprehensive baseline assessments, analysis of decarbonisation pathways, and extensive stakeholder consultations involving industry participants, policymakers, technical experts, and financial institutions. Authorities say the multi-phase approach is intended to ensure that the roadmap is technically sound, practical, and aligned with international best practices.
The inception workshop held on Friday brought together representatives from government institutions, utilities providers, technology firms, development agencies, and private sector stakeholders. Discussions focused on aligning participants on methodology, data collection frameworks, and investment priorities required for the transition toward net-zero manufacturing.
The Sri Lanka apparel sector has increasingly promoted sustainability initiatives in recent years as international buyers demand environmentally responsible production standards. Several major apparel exporters have already invested in renewable energy systems, energy-efficient technologies, and green-certified manufacturing facilities.
Industry analysts say the latest initiative could further accelerate sustainability-focused investments while improving Sri Lanka’s positioning as a responsible apparel sourcing destination in Asia. Enhanced environmental standards may also strengthen relationships with European buyers seeking low-carbon supply chains.
Jagathdeva Vidanagama, Chief Technical Specialist for the AICRSL project, said the roadmap would provide robust technical guidance and data-driven recommendations for both policymakers and industry participants.
He noted that the initiative aims to help public institutions and private companies translate climate policy objectives into practical actions capable of reducing emissions, improving energy efficiency, and enhancing long-term competitiveness.
The EU Net-Zero Initiative is also expected to support future green financing opportunities by providing clearer investment pathways for sustainability-related projects within the apparel sector. Financial institutions participating in the consultations are expected to explore mechanisms for supporting energy transition projects and climate-friendly industrial upgrades.
Economic observers say Sri Lanka’s apparel industry faces increasing pressure to adapt quickly to global sustainability benchmarks if it hopes to maintain export growth and protect access to premium international markets. Failure to meet emerging environmental standards could eventually impact buyer confidence and trade competitiveness.
At the same time, experts believe the transition toward low-carbon manufacturing could create long-term operational benefits through reduced energy costs, improved efficiency, and stronger global brand positioning.
As climate-focused trade policies continue to expand globally, the Sri Lanka apparel sector is expected to play a key role in the country’s broader sustainability transition. Authorities hope the roadmap will provide a practical framework capable of balancing economic growth, export resilience, and environmental responsibility in the years ahead.