The textile and ready-made garments sector play a pivotal role in driving economic growth, foreign currency inflow, and employment opportunities. This sector significantly contributes to the national Gross Domestic Product (GDP). However, the textile industry is known for its substantial resource requirements, particularly in terms of water and energy. The industry relies heavily on groundwater with an average temperature of 27.33 ± 1.46 ^oC for various processes such as washing, texturing, and dyeing. Meeting the desired elevated temperature for these processes demands a considerable amount of energy. Unfortunately, the subsequent wastewater generated during these processes, with an elevated temperature of 40.4 ± 8.7 ^oC, is released without recovering its thermal energy. The recovery of this thermal energy presents an excellent opportunity as an alternative renewable energy source, potentially replacing the natural gas and coal traditionally used in the industry for heating purposes. In our research, we conducted a comprehensive analysis of energy recovery from the wastewater generated, taking into account groundwater temperature, wastewater temperature, and the discharge flow rate (aligned with wastewater treatment plant capacities). Additionally, we developed a model to estimate the potential energy recovery. Our model results were then linked to factors like fuel consumption, economic savings, and the reduction in CO₂ emissions. This was achieved through the utilization of existing databases, insights from industrial surveys, and input from international retail companies. The analysis indicated that there is a potential to recover 103 T kWh of energy annually, resulting in substantial savings. This includes a reduction in natural gas consumption by 8.7 billion cubic meters and a decrease in coal usage by 6, 89,794 tons. Consequently, there would be a total energy cost savings of 1.36 billion USD annually. Furthermore, this shift towards energy recovery and reduced consumption of coal and natural gas would lead to a significant reduction in CO₂ emissions, amounting to 24.8 million tons per annum. This reduction is more than 20% of Bangladesh's annual CO₂ emissions and contributes to a 2.00% decrease in the total greenhouse gas emissions associated with the global textile and apparel industry. Thus, this initiative plays a crucial role in promoting the textile industry's sustainable transition towards a green circular economy.