Inditex Commits $50 Million to Fund Cleaner Fashion Factories

The Decarbonization of Textile, Apparel, and Footwear Suppliers fund, known as D-TAFS, is managed by SIMA Funds with IFC. The GEF identifies $60 million from IFC alongside the Zara owner’s commitment.

Long-term loans will support factories in emerging markets, including smaller operators, investing in energy efficiency, renewable power and water savings. The programme also addresses hazardous chemicals used in production. How the financing works The GEF has committed $13.8 million to the fund’s highest-risk financing layer.

By accepting losses before more senior investors, that capital helps make the proposition more attractive to other backers. A separate $917,000 GEF grant supports technical assistance for hazardous chemicals and waste management.

For fashion brands, financing suppliers is part of addressing emissions generated beyond their own stores and offices. The GEF says suppliers account for most apparel-brand emissions, making factory improvements central to meeting climate commitments.