Energy Transition Glossary: Understand the Key Terms and Their Importance
As the global climate crisis continues to escalate, the topic of energy transition has become increasingly relevant in news, policies, and international discussions. This shift is crucial to tackling the negative impacts of climate change on the environment and humanity.
However, for many people, the terms used in energy transition debates can feel complex and confusing. From RUPTL to decarbonization, ESG, and COP30, these concepts play an essential role in shaping the future of clean energy.
In this article, we break down the most important terms you need to know about the energy transition so you can better understand the process and its impact on Indonesia and the world.
What Is Energy Transition?
Energy transition refers to the global shift from using fossil fuels such as coal, oil, and natural gas to renewable energysources like solar, wind, and hydropower.
However, this process involves far more than just replacing one energy source with another. It also requires social, economic, and environmental considerations to ensure the transition is fair, inclusive, and sustainable.
For a country like Indonesia, which still relies heavily on coal for electricity generation, understanding the dynamics of energy transition is critical for balancing economic growth, environmental protection, and social welfare.
The Principle of a Just Energy Transition
Ensuring Inclusivity and Fairness
Transitioning to clean energy is not only about building new infrastructure or adopting innovative technology. The most important goal is ensuring that no one is left behind and no community is disadvantaged in the process. This principle is known as a just energy transition.
It means that the shift away from fossil fuels must be inclusive, ensuring that workers, local communities, and vulnerable groups benefit equally from the transition.
Real-World Example of a Just Transition
For example, coal industry workers should receive training and upskilling programs to help them find employment in the renewable energy sector. By doing this, no group is sacrificed for the sake of achieving clean energy goals.
Key Terms in Energy Transition
1. Rencana Usaha Penyediaan Tenaga Listrik (RUPTL)
RUPTL is Indonesia’s official Electricity Supply Business Plan, a strategic document prepared by PLN (Indonesia’s state-owned electricity company). It outlines the roadmap for electricity development in the country, including long-term policies and energy targets.
In the context of energy transition, RUPTL is critical because it reflects the government’s commitment to reducing dependence on fossil fuels and accelerating renewable energy adoption.
The latest RUPTL is often called the “green RUPTL” since it allocates a larger portion of energy generation to renewables compared to previous years.
2. Decarbonization
Decarbonization refers to efforts to reduce or eliminate carbon emissions from various human activities, such as electricity generation, industrial production, and transportation.
One example is shifting from coal-fired power plants to renewable energy sources like solar, wind, and hydropower.
Decarbonization plays a vital role in achieving Indonesia’s target of Net Zero Emissions by 2060. Without it, the country cannot meet its climate commitments or reduce the severe impacts of the climate crisis.
3. Environmental, Social, and Governance (ESG)
In the investment world, ESG has become a global standard for sustainable investing. It ensures that companies and investors consider environmental, social, and governance factors when making decisions.
Environmental: How does the company manage its environmental impact, reduce emissions, and support renewable energy?
Social: Does the company ensure fair labor practices and support local communities?
Governance: Are decision-making processes transparent and accountable?
By applying ESG principles, businesses and investors can balance profitability with sustainability, helping to drive a cleaner, more equitable energy future.
4. Second Nationally Determined Contribution (SNDC) (H3)
The SNDC is Indonesia’s updated climate action plan that sets national targets for reducing greenhouse gas emissionsand adapting to the impacts of climate change.
This document builds upon Indonesia’s previous Enhanced NDC and aligns with the Paris Agreement 2015. In 2025, Indonesia will submit its SNDC to the United Nations Framework Convention on Climate Change (UNFCCC).
The SNDC is a critical indicator of Indonesia’s ambition and commitment to combating the climate crisis while accelerating its energy transition.
5. Conference of the Parties 30 (COP30)
COP30 is the annual global climate conference that brings together nearly every country in the world to discuss solutions to climate change.
In November 2025, COP30 will take place in Brazil, with key discussions focusing on:
Cutting greenhouse gas emissions
Increasing investment in renewable energy
Strengthening global climate adaptation strategies
The decisions made at COP30 will directly influence global energy policies, including Indonesia’s path toward sustainable energy.
Why Energy Transition Matters to Everyone (H2)
The energy transition is not just a government or corporate issue; it impacts our everyday lives. Here are several reasons why it matters:
Cleaner air and better health: Shifting to renewables reduces air pollution and respiratory diseases.
Affordable and sustainable energy: Renewable energy offers long-term cost efficiency and stability.
Combating the climate crisis: Reducing fossil fuel dependence helps mitigate extreme weather events and rising temperatures.
New job opportunities: The renewable energy sector opens doors to thousands of green jobs in Indonesia and globally.
Understanding these key concepts allows individuals, communities, and policymakers to take part in shaping a greener, more resilient future.
The energy transition is one of Indonesia’s greatest challenges in the era of climate change, but it is also a tremendous opportunity to create a cleaner, healthier, and more sustainable future.
From learning about just energy transition principles to understanding RUPTL, supporting decarbonization, and following global milestones like COP30, every step brings Indonesia closer to achieving its climate and energy goals.
The journey toward renewable energy begins with awareness. By understanding these terms and concepts, we can all play a role in shaping a brighter and greener future.
