Wool Industry Green Transformation Accelerates: Three Signals from the IWTO Congress in Dalang

One out of every five sweaters globally is made in Dalang, Guangdong—a wool cluster with annual trade exceeding 72 billion yuan, now undergoing a deep transformation from OEM to brand and smart manufacturing. On June 24, the 95th IWTO World Wool Congress opened here, drawing delegates from over 20 countries to discuss green transformation and global supply chain collaboration.

Green Paper Launch: Correcting Wool's Environmental Narrative

The most anticipated agenda item was the global launch of the IWTO Wool Green Paper. Led by the International Wool Textile Organization, the document aims to establish unified carbon footprint accounting standards and full-chain traceability data systems. Project lead Francesco Botto noted that only a few companies are currently participating, and the industry needs a unified voice to counter EU policy influence. Dr. Paul Swan pointed out during the release that existing public data exaggerates wool's negative environmental impact, and younger urban generations have been misled by biased messaging. For buyers, the Green Paper's implementation will directly affect compliance costs: wool products with verified carbon data will gain market access advantages under potential EU carbon border adjustments.

Dalang as a Model: From Factory Floor to Innovation Hub

Dalang's wool industry has evolved over 40 years into a complete ecosystem from raw material processing to finished goods. Sun Ruizhe, President of the China National Textile and Apparel Council, revealed that Dalang produces over 900 million garments annually, with total industry chain trade exceeding 72 billion yuan. More notably, the town is proactively reshaping its growth model. Zou Jinzhao, a Dalang government official, emphasized that the local industry has already pivoted toward technology, culture, and green development, inviting global partners to collaborate on raw materials, technology, branding, and platforms. This transformation aligns with China's broader policy direction outlined by Deng Xiaoding of the Ministry of Industry and Information Technology, who called for standards-based collaboration, innovation-driven digitalization, green development, and open cooperation.

Youth and Humanity: The Underestimated Variables

The congress featured a dedicated 'Wool Youth' session where dozens of young representatives from various countries introduced their work. Program leader Jacques Ji said the platform aims to help newcomers cross geographic boundaries and build networks—a subtle reflection of the industry's talent gap challenge. Thanawat Tiensin, FAO Assistant Director-General, offered a human perspective: behind every wool fiber is a farming family caring for livestock and land. For brands, this represents a rich storytelling opportunity to translate farmers' livelihoods into consumer-perceived sustainability value.

Practical Recommendations

For Buyers - Monitor the Green Paper's upcoming carbon footprint standards and prepare suppliers' carbon data collection capabilities to address potential EU carbon tariffs. - Prioritize suppliers already participating in IWTO traceability systems to reduce compliance risk. - Emphasize wool's natural and renewable attributes in brand messaging to counter synthetic fiber narratives.

For Exporters - Track the Green Paper's acceptance within EU policy circles to assess its impact on export orders. - Consider technical partnerships with clusters like Dalang to leverage their smart manufacturing upgrades for cost reduction. - In overseas markets, adopt localized storytelling approaches similar to 'plateau yak down' to convert cultural added value into pricing power.