The geometric shapes and materials commonly used in conventional steel-reinforced concrete can result in a high wastage of cement that in many cases is not necessary to deliver the required load-bearing capacity. Textile-reinforced concrete (TRC) allows for a reduction in the material mass through the optimization of the cross-sectional geometry according to the stress state under flexural conditions. Hence TRC enables the realisation of more efficient shapes such as an unequal flange I-beam. However, even within this optimized geometry, there are well-defined areas with different performance requirements. This paper explores the economic and environmental advantages that can additionally be achieved if the concrete is functionally graded within a textile-reinforced structure to better match the environmental and mechanical requirements. For this purpose, concrete mixes with different compressive strengths and CO2 footprints are identified. To help minimise environmental impact, the mix designs take advantage of the inert chemical characteristics of the textile reinforcement. As such, the need for high cement contents that would otherwise be required to ensure high alkalinity to passivate internal steel reinforcement is mitigated. The synergy of innovative TRC and functional concrete grading leads to significant reductions in the embodied CO2 of up to 75% relative to a representative conventional concrete beam.