Most countries depend on coal-fired thermal power plants (CTPPs) to meet energy demands. However, the adverse environmental impacts of CTPPs also remain a major concern. As the energy generations from renewable energy resources are still in the developing stage, reliance on CTPPs is inevitable. Hence, the efficiency of CTPPs has to be improved, while decreasing carbon emissions. This study aims to identify and evaluate the key factors that need to be addressed in improving the performance and minimizing the carbon emission of CTPPs. With the literature review and industrial interaction, twenty-four key factors are identified. Next, an integrated approach of the fuzzy analytic hierarchy process (FAHP) and fuzzy decision-making and trial laboratory (FDEMATEL) is used to evaluate the key factors. FAHP prioritizes the key factors and FDEMATEL reveals the relationship among the key factors. Results indicate air preheater leakage, plugging by ash, high levels of air ingress, air preheater secondary fire, and high levels of corrosion as the top five key factors affecting CTPP performance. Based on the outcome, the study offers some implications that may assist the industrial management in taking timely actions in improving the performance of CTPPs.