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In a groundbreaking effort to curb the environmental damage caused by fashion and construction industries, eight countries have launched a $340 million initiative aimed at transforming these resource-heavy sectors. This six-year program, backed by the Global Environment Facility (GEF), seeks to eliminate hazardous chemicals from supply chains, reduce greenhouse gas emissions, and restore vital ecosystems.

The program, which includes Cambodia, Costa Rica, Ecuador, India, Mongolia, Pakistan, Peru, and Trinidad and Tobago, will promote sustainable alternatives in both industries, which are among the top three contributors to pollution, land degradation, and biodiversity loss. It aims to foster circular, collaborative value chains and innovative practices to make these sectors more resource-efficient and environmentally responsible.

“We are transforming industries that connect global markets but often leave behind a heavy environmental toll,” said GEF CEO Carlos Manuel Rodriguez. “By targeting pollution and chemical use in these sectors, we are driving meaningful change that will benefit the planet and its people for generations.”

Shifting Supply Chains Towards Sustainability
New initiatives include eco-friendly construction materials, circular fashion systems, and regional collaborations

The focus of the program is to overhaul the supply chains of the fashion and construction sectors, addressing the chemical intensity and wastefulness inherent in both. For instance, building one kilogram of textile requires almost 0.6 kilograms of chemicals on average. Likewise, the construction industry is the largest global consumer of chemicals, many of which are toxic and pollute air, water, and soil.

In response, the program will support sustainable material innovation, including low-carbon cement and biobased materials like mycelium and bamboo. In the fashion industry, it will encourage regenerative design, responsible purchasing, and better waste management practices. Examples of local initiatives include transforming banana pseudo-stem waste into viable fiber in Pakistan and creating artisanal brick kilns in Ecuador. Meanwhile, countries like Cambodia will pilot eco-labelling for green buildings and fashion products.

A key goal of the program is to prevent the release of 6 million tonnes of greenhouse gases and 18,750 tonnes of hazardous chemicals into ecosystems, while also restoring 825,000 hectares of land. By 2031, the initiative is expected to impact 2 million people globally, with a particular focus on empowering women, youth, and local communities through job creation, economic opportunities, and the integration of indigenous knowledge.

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Collaborating for Global Impact
The program emphasizes South-South cooperation and broadening access to finance

The initiative is not only an environmental effort but also a catalyst for social and economic transformation. Countries are being encouraged to build strong regional partnerships and share resources to reduce the risk of burden-shifting. As the program advances, it will help strengthen local economies, create new industries, and attract foreign investment in sustainable practices.

“This is more than just an environmental campaign,” said Ronny Rodríguez Chaves, Costa Rica’s Vice Minister of Energy. “This initiative will drive innovation, create new industries, and set our nation on the path to becoming a global leader in sustainable construction.”

The Global Environment Facility, along with key partners such as the UN Environment Programme (UNEP) and the UN Development Programme (UNDP), will oversee the implementation of the project. A global advisory group will also be established to guide the program’s strategies, ensuring alignment with existing sustainability efforts and maximizing impact across all stages of the supply chains.

As the program takes shape, it is poised to make a meaningful contribution to tackling the world’s most pressing environmental challenges. By addressing pollution, climate change, and biodiversity loss simultaneously, this ambitious initiative aims to turn two of the world’s most polluting industries into catalysts for a cleaner, greener future.