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Toshiba Corp. will stop taking new construction orders for coal-fired power plants, following a strategic shift toward renewable energy.
The company aims to halve its greenhouse gas emissions by fiscal 2030.
However, it will still complete existing orders for coal power plants at home and abroad.
The decision is in pursuance of creating a greener society through substantial cuts in greenhouse gas emissions.
Toshiba President and CEO Nobuaki Kurumatani noted that demand for coal power plants has been declining and that they will seek to more than triple its sales from renewable energy over the next decade.
The company is seeking to boost its energy segment earnings of $1.8 billion in fiscal 2019 to $6.17 billion in fiscal 2030.
Prime Minister Yoshihide Suga vowed to bring Jpan's greenhouse gas emissions to net-zero by 2050.
Environmentalists have criticized Japan for its coal-fired power plant construction overseas, particularly in Southeast Asia.
From April to September, Toshiba reported a net profit of $33 million, swinging back to profitability for the first time in two years boosted by the recovery of its affiliate Kioxia Holdings Corp.
Sales plunged 19.9 percent to $13 billion, and operating profit plummeted 94.0 percent to $29.5 million.
