Japanese conglomerate Marubeni has unveiled plans to halve its coal power generating capacity and stop investing in new coal-fired power plants.
Marubeni’s decision comes amid mounting pressure on businesses to shift investment away from fossil fuels to combat climate change.
“As a global player in the power business, Marubeni will reduce its greenhouse gas emissions volume from its power generation portfolio,” the major coal power operator said in a statement released on Tuesday.
Under the plan, Marubeni will halve its coal-fired power net generation capacity of three gigawatts by 2030.
Marubeni will no longer start new coal power projects “in principle”, instead focusing on renewable energy.
Marubeni has interests in power plants worldwide equivalent to 12 gigawatts of capacity, the largest among Japanese trading houses, the Nikkei business daily said.
Japan has been blamed for financing coal-powered energy in developing countries and a heavy domestic dependence on fossil fuel since the nation shifted to thermal power generation. Most nuclear reactors have remained offline after the 2011 tsunami disaster.
Coal is responsible for 45 percent of the energy sector’s global CO2 emissions. It also produces other greenhouse gas pollutants and small particles hazardous to health, according to the International Energy Agency.