One out of every five sweaters globally comes from Dalang, a small town in the Pearl River Delta whose wool supply chain has exceeded 72 billion RMB in annual transaction value. On June 24, the 95th International Wool Textile Organization (IWTO) Congress opened here, with delegates from over 20 countries witnessing the global launch of the IWTO Wool Green Paper. The signal from this conference is clear: the competitive rules of the wool industry are shifting from cost and scale to carbon footprint and traceability.
The Stakes Behind the Green Paper
The IWTO Wool Green Paper is far more than a simple industry report; it marks the official entry of the global wool sector into a standards competition. According to publicly available industry data, there is currently no unified standard for wool carbon footprint accounting, and some studies have deliberately exaggerated wool's environmental impact, leading a new generation of urban consumers to develop biased views of natural fibers. The Green Paper's core objective is to establish a traceability data system covering the entire supply chain, customize carbon footprint accounting standards by production region, and leverage industry organizations to strengthen the sector's voice in EU policy-making.
This means that within the next two years, from Australian pastures to Chinese weaving workshops, the carbon footprint of every kilogram of wool will be quantified and recorded. For thousands of Dalang's woolen enterprises, this represents both a compliance pressure and an opportunity for differentiation—factories that achieve carbon footprint certification first will secure priority orders from European and American brands.
Dalang's Transformation Logic
After four decades of development, Dalang's wool industry has formed a complete ecosystem from raw material processing to product design, manufacturing, and trade. But the core message from this congress is that this traditional manufacturing hub is proactively redefining its positioning. The local government has explicitly outlined three directions for empowerment: technology, culture, and green development, and plans to deepen global cooperation across four dimensions: raw materials, technology, branding, and platforms.
Data shows Dalang produces over 900 million garments annually, exporting to more than 100 countries. But more noteworthy is the structural shift: the proportion of OEM work is declining, while the share of independent brands and design output is rising. Concurrently, the penetration rate of intelligent weaving equipment exceeds 60%, and digital management systems cover over half of the above-scale enterprises. This transformation is not a passive response but a strategic anticipation of global supply chain restructuring—when trade protectionism disrupts traditional order flows, clusters with complete supply chains and rapid response capabilities are more resilient.
Practical Impact for Buyers
The release of the Green Paper will directly alter the procurement logic for wool raw materials. In the past, buyers focused mainly on physical indicators like yarn count, weight, and color fastness. In the future, carbon footprint data will become a mandatory item on selection lists. The EU's upcoming textile environmental labeling regulation requires importers to provide product lifecycle carbon footprints, and the Green Paper is the industry's preemptive infrastructure to meet this policy.
For brand buyers, this means reassessing supplier portfolios: factories already connected to carbon footprint tracking systems will gain priority cooperation rights. For traders, wool product pricing will gain an environmental cost dimension—low-emission Australian Merino wool may command a 10%-15% premium over standard wool.
Youth Power and Industry Legacy
A dedicated youth program was featured at the congress, with dozens of young delegates from different countries presenting their businesses. This detail reflects a deep industry anxiety: the wool sector faces a talent gap, as younger generations perceive textile manufacturing as a sunset industry. The youth program's core value lies in breaking this stereotype, showing newcomers that wool is not just an ancient craft but also involves intelligent weaving, carbon management, brand operations, and other cutting-edge fields.
From an industry perspective, talent reserves directly impact the sustainability of technological innovation. Dalang's ongoing "platform + workshop + academy" model, which combines the development of specialty fibers like Tibetan yak down with training for young designers, attempts to forge a new path where cultural empowerment and commercial value go hand in hand.