Classical kinetic energy refers to the energy an object possesses due to its motion, calculated using the formula $$KE = \frac{1}{2}mv^2$$ where m is mass and v is velocity. Relativistic energy, on the other hand, incorporates the effects of special relativity and is defined as $$E = \gamma mc^2$$ where $$\gamma = \frac{1}{\sqrt{1 - \frac{v^2}{c^2}}}$$, with c being the speed of light. The distinction becomes crucial at speeds approaching the speed of light, where classical equations fail to accurately describe the energy and momentum of objects.