State-Owned Companies Transitioning Away From Coal Mining and Coal-Fired Power

The document analyzes how state-owned enterprises (SOEs) in the G20 and beyond are shifting investments from coal to renewables due to cost competitiveness and climate policies. It highlights specific transitions in China (CEIC), India (Coal India Limited), and Sweden (Vattenfall), while noting that some SOEs, particularly in China, continue to invest in coal-fired power abroad. The text also discusses the role of SOEs in providing social protection during the energy transition and mentions similar shifts in the oil and gas sectors in Saudi Arabia, Norway, and Denmark.

• State-owned enterprises (SOEs) hold significant global influence in the energy sector, owning approximately 60% of coal mines and coal power plants worldwide. In the G20, the annual average value of SOE investment in oil, gas, and coal production was USD 286 billion in 2013 and 2014, with USD 12 billion specifically allocated to coal mining and coal-fired power.
• Several national SOEs are diversifying away from coal: China's China Energy Investment Corporation (CEIC) has a generation capacity that includes 23% from renewables; India's Coal India Limited (CIL) plans to establish 20,000 MW of solar projects over 10 years; and Sweden's Vattenfall divested its lignite mines and power plants in eastern Germany in 2014 to meet carbon reduction targets.
• While transitioning domestically, some Chinese state-owned power companies are expanding coal investments internationally, with Chinese firms involved in the construction, ownership, or financing of at least 16% of all coal-fired power stations currently under development outside of China.
• SOEs often provide critical social services, such as managing pensions and medical bills, which allows them to play a key role in creating jobs for former fossil fuel employees during the transition. The document suggests that separating these social responsibilities from SOE operations by transferring them to local or regional governments could reduce the burden on these companies.
• Similar transitions are occurring in the oil and gas sectors: Saudi Arabia's Vision 2030 seeks to reduce oil dependency, Norway's Statoil rebranded as Equinor to become a broad energy company, and Denmark's former DONG has completely divested from oil and gas to become a state-owned renewable energy company (Orsted).

APA

International Institute for Sustainable Development (n.d.). State-Owned Companies Transitioning Away From Coal Mining and Coal-Fired Power. https://www.iisd.org/system/files/publications/stories-g20-india-china-sweden-en.pdf

Chicago

International Institute for Sustainable Development. State-Owned Companies Transitioning Away From Coal Mining and Coal-Fired Power. n.d. https://www.iisd.org/system/files/publications/stories-g20-india-china-sweden-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=State-Owned Companies Transitioning Away From Coal Mining and Coal-Fired Power |url=https://www.iisd.org/system/files/publications/stories-g20-india-china-sweden-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndstateowned, author = {{International Institute for Sustainable Development}}, title = {{State-Owned Companies Transitioning Away From Coal Mining and Coal-Fired Power}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/stories-g20-india-china-sweden-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }