Financial Times Energy Transition Summit 2026

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Industry trends

Key trends shaping this market and its wider industry.

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Frequently asked

Glossary

1

Energy transition

The shift of an economy's energy supply and use from fossil fuels toward lower-carbon sources such as renewables, nuclear, storage and efficiency, alongside changes to grids, markets and industrial processes.

2

Net zero

A state where the greenhouse gases released into the atmosphere are balanced by those removed, often through a mix of emissions cuts, carbon sinks and credits. Net zero is not the same as zero emissions.

3

Decarbonization

The process of reducing carbon dioxide and other greenhouse gas emissions from power, industry, transport, buildings and land use, typically through efficiency, fuel switching, renewables and abatement technologies.

4

Scope 1, 2 and 3 emissions

A corporate accounting split: Scope 1 covers direct emissions from owned operations; Scope 2 covers purchased electricity, heat or steam; Scope 3 covers value-chain emissions from suppliers, customers and product use.

5

Transition finance

Capital raised or deployed to help high-emitting companies and sectors cut emissions in line with climate targets, including sustainability-linked loans, transition bonds and project finance for abatement.

6

Green bond

A bond whose proceeds are earmarked for eligible environmental projects such as renewable energy, clean transport, water or biodiversity, with reporting against a framework.

7

Sustainability-linked bond

A bond whose financial terms, such as the coupon, can change if the issuer meets or misses pre-set sustainability performance targets. Proceeds are not ring-fenced for green projects.

8

Power purchase agreement (PPA)

A long-term contract in which a buyer purchases electricity from a generator at agreed terms. Corporate PPAs are used to secure renewable power and hedge price risk.

9

Carbon capture, use and storage (CCUS)

A set of technologies that capture CO2 from industrial or power sources, then transport it for permanent storage or use in products and processes.

10

Green hydrogen

Hydrogen produced using renewable electricity and electrolysis, with low or near-zero emissions. It is distinct from grey hydrogen made from fossil gas without carbon capture.

11

Grid flexibility

The ability of a power system to balance supply and demand using storage, demand response, interconnectors and flexible generation as variable renewables grow.

12

Just transition

A framework for ensuring that the shift to a low-carbon economy shares costs and benefits fairly, with support for workers, communities and regions dependent on fossil fuel activity.

13

Blended finance

The use of public or philanthropic capital to reduce risk and mobilize private investment for climate and development projects.

14

Carbon credit

A tradable unit representing one tonne of CO2 avoided, reduced or removed, used in voluntary or compliance carbon markets subject to rules on quality and additionality.