The textile sector is a major contributor to global greenhouse gas emissions because of its high dependence on fossil fuels for energy-intensive processes like dyeing, spinning, and finishing. In the wake of climate change, incorporating renewable energy sources into textile manufacturing offers a sustainable and economically feasible solution. This chapter explores the environmental footprint of conventional textile energy sources and highlights the shift towards solar, wind, geothermal, and biomass energy in textile production. The implementation of renewable energy along with reducing the carbon footprint also enhances operational efficiency and enduring productivity. Technological developments, like energy-efficient machinery and green chemistry, are discussed in the context of energy demand reduction. The chapter also studies international and national policies that support sustainable energy in the textile industry. Furthermore, it evaluates the socio-economic advantages like employment, health enhancements and community upliftment in high textile active regions. Despite its potential, the transition has obstacles like high capital costs, technical barriers, and policy gaps. The chapter concludes by recommending integrated renewable energy strategies, supported by regulatory frameworks and technological innovation, to accelerate the textile industry’s contribution to climate mitigation.