With their large greenhouse gas footprint and strategic importance in many emerging markets, state-owned enterprises (SOEs) are set to play a key role in the energy transition and the development of low-carbon technologies, says Fitch Ratings. But their emissions disclosure is limited compared with private-sector companies while government-controlled firms can be subject to significant policy uncertainty, says the group in a report. “SOEs can enable the development of high-risk new technologies, depending on the country’s commitment to emission reduction,” says David McNeil, Head of Climate Risk. Analysis by the OECD suggests that although SOEs in the power sector represent over half of the world’s fossil fuel supply, they also own about 75% of global hydro and nuclear capacity. Fitch points to the nascent green-hydrogen sector as an example of the key role that SOEs can play in developing high-risk decarbonisation technology.