IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v199y2024ics1364032124002223.html
   My bibliography  Save this article

Unlocking carbon finance: Empowering energy communities for mutual benefit

Author

Listed:
  • Meitern, Maarja

Abstract

This study investigates the potential of utilizing carbon credits to finance innovative local energy communities in Europe, addressing a significant gap in academic literature. Despite the growing interest in voluntary carbon credits as a mechanism for offsetting carbon emissions, there is limited evidence connecting local energy systems to voluntary carbon markets. The study explores whether carbon credits could serve as a practical tool for funding the development of energy communities, contributing to sustainable energy transitions and climate mitigation strategies. The research employs a comprehensive methodology to assess the quality of carbon credit projects and examines ten innovative energy community projects in Europe. Key findings reveal there is potential for using carbon credits to finance energy community initiatives. However, challenges persist, particularly regarding financing barriers and the volatile nature of carbon markets. The study underscores the importance of policy support in establishing clear standards for voluntary markets and promoting the accessibility of carbon offsets. Furthermore, it suggests potential solutions such as pre-financing agreements and the utilization of carbon market derivatives to enhance project viability. Overall, the study offers insights into the intersection between voluntary carbon markets and local energy initiatives, providing a foundation for further research and policy development in the field of local sustainable development and climate change mitigation.

Suggested Citation

  • Meitern, Maarja, 2024. "Unlocking carbon finance: Empowering energy communities for mutual benefit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    • Handle: RePEc:eee:rensus:v:199:y:2024:i:c:s1364032124002223
    DOI: 10.1016/j.rser.2024.114499
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032124002223
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2024.114499?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maarja Meitern, 2022. "Does Access to Regulative Exemption Reduce Barriers for Energy Communities? A Dutch Case Study," Sustainability, MDPI, vol. 14(9), pages 1-13, May.
    2. Peng, Donna & Poudineh, Rahmatallah, 2019. "Electricity market design under increasing renewable energy penetration: Misalignments observed in the European Union," Utilities Policy, Elsevier, vol. 61(C).
    3. Fermín Alcasena & Marcos Rodrigues & Pere Gelabert & Alan Ager & Michele Salis & Aitor Ameztegui & Teresa Cervera & Cristina Vega-García, 2021. "Fostering Carbon Credits to Finance Wildfire Risk Reduction Forest Management in Mediterranean Landscapes," Land, MDPI, vol. 10(10), pages 1-23, October.
    4. Notton, Gilles, 2015. "Importance of islands in renewable energy production and storage: The situation of the French islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 260-269.
    5. Backe, Stian & Zwickl-Bernhard, Sebastian & Schwabeneder, Daniel & Auer, Hans & Korpås, Magnus & Tomasgard, Asgeir, 2022. "Impact of energy communities on the European electricity and heating system decarbonization pathway: Comparing local and global flexibility responses," Applied Energy, Elsevier, vol. 323(C).
    6. Heather C. Lovell, 2010. "Governing the carbon offset market," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 1(3), pages 353-362, May.
    7. August Wierling & Valeria Jana Schwanitz & Jan Pedro Zeiß & Celine Bout & Chiara Candelise & Winston Gilcrease & Jay Sterling Gregg, 2018. "Statistical Evidence on the Role of Energy Cooperatives for the Energy Transition in European Countries," Sustainability, MDPI, vol. 10(9), pages 1-25, September.
    8. Daniel Wuebben & Juan Romero-Luis & Manuel Gertrudix, 2020. "Citizen Science and Citizen Energy Communities: A Systematic Review and Potential Alliances for SDGs," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    9. Mello, Fabiana Peixoto de, 2024. "Voluntary carbon offset programs in aviation: A systematic literature review," Transport Policy, Elsevier, vol. 147(C), pages 158-168.
    10. Brummer, Vasco, 2018. "Community energy – benefits and barriers: A comparative literature review of Community Energy in the UK, Germany and the USA, the benefits it provides for society and the barriers it faces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 187-196.
    11. Weisser, Daniel, 2004. "On the economics of electricity consumption in small island developing states: a role for renewable energy technologies?," Energy Policy, Elsevier, vol. 32(1), pages 127-140, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jenny Palm, 2021. "The Transposition of Energy Communities into Swedish Regulations: Overview and Critique of Emerging Regulations," Energies, MDPI, vol. 14(16), pages 1-15, August.
    2. Mehmet Efe Biresselioglu & Siyami Alp Limoncuoglu & Muhittin Hakan Demir & Johannes Reichl & Katrin Burgstaller & Alessandro Sciullo & Edoardo Ferrero, 2021. "Legal Provisions and Market Conditions for Energy Communities in Austria, Germany, Greece, Italy, Spain, and Turkey: A Comparative Assessment," Sustainability, MDPI, vol. 13(20), pages 1-25, October.
    3. Roberta Roberto & Gabriella Ferruzzi & Viviana Negro & Michel Noussan, 2023. "Mapping of Energy Community Development in Europe: State of the Art and Research Directions," Energies, MDPI, vol. 16(18), pages 1-29, September.
    4. Chopin, Pierre & Guindé, Loïc & Causeret, François & Bergkvist, Göran & Blazy, Jean-Marc, 2019. "Integrating stakeholder preferences into assessment of scenarios for electricity production from locally produced biomass on a small island," Renewable Energy, Elsevier, vol. 131(C), pages 128-136.
    5. Julia Maria Wittmayer & Tessa de Geus & Bonno Pel & F. Avelino & Sabine Hielscher & Thomas Hoppe & Marie Susan Mühlemeier & Agata Stasik & Sem Oxenaar & Karoline K.S. Rogge & Vivian Visser & Esther Ma, 2020. "Beyond instrumentalism: Broadening the understanding of social innovation in socio-technical energy systems," ULB Institutional Repository 2013/312323, ULB -- Universite Libre de Bruxelles.
    6. Inês, Campos & Guilherme, Pontes Luz & Esther, Marín-González & Swantje, Gährs & Stephen, Hall & Lars, Holstenkamp, 2020. "Regulatory challenges and opportunities for collective renewable energy prosumers in the EU," Energy Policy, Elsevier, vol. 138(C).
    7. Neska, Ewa & Kowalska-Pyzalska, Anna, 2022. "Conceptual design of energy market topologies for communities and their practical applications in EU: A comparison of three case studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    8. Horstink, Lanka & Wittmayer, Julia M. & Ng, Kiat, 2021. "Pluralising the European energy landscape: Collective renewable energy prosumers and the EU's clean energy vision," Energy Policy, Elsevier, vol. 153(C).
    9. Atkinson, Travis R. & Preckel, Paul V. & Gotham, Douglas, 2021. "Long-term investment planning for the electricity sector in Small Island Developing States: Case study for Jamaica," Energy, Elsevier, vol. 228(C).
    10. Wittmayer, Julia M. & Avelino, Flor & Pel, Bonno & Campos, Inês, 2021. "Contributing to sustainable and just energy systems? The mainstreaming of renewable energy prosumerism within and across institutional logics," Energy Policy, Elsevier, vol. 149(C).
    11. Maksym Koltunov & Simon Pezzutto & Adriano Bisello & Georg Lettner & Albert Hiesl & Wilfried van Sark & Atse Louwen & Eric Wilczynski, 2023. "Mapping of Energy Communities in Europe: Status Quo and Review of Existing Classifications," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    12. Roberto De Lotto & Calogero Micciché & Elisabetta M. Venco & Angelo Bonaiti & Riccardo De Napoli, 2022. "Energy Communities: Technical, Legislative, Organizational, and Planning Features," Energies, MDPI, vol. 15(5), pages 1-22, February.
    13. Lanka Horstink & Julia M. Wittmayer & Kiat Ng & Guilherme Pontes Luz & Esther Marín-González & Swantje Gährs & Inês Campos & Lars Holstenkamp & Sem Oxenaar & Donal Brown, 2020. "Collective Renewable Energy Prosumers and the Promises of the Energy Union: Taking Stock," Energies, MDPI, vol. 13(2), pages 1-30, January.
    14. Barbara Marchetti & Matteo Vitali & Giovanni Biancini, 2024. "Renewable Energy Proliferation and the New Local Energy Community Paradigm: Analysis of a Case Study in Italy," Energies, MDPI, vol. 17(7), pages 1-16, March.
    15. Olaoluwa Sunday Ogunleye & Frans Coenen & Thomas Hoppe, 2022. "Stakeholder Perspectives on Community Energy Contributing to the Use of Renewable Energy Sources and Improving Energy Security in Nigeria," Energies, MDPI, vol. 15(19), pages 1-25, October.
    16. F.G. Reis, Inês & Gonçalves, Ivo & A.R. Lopes, Marta & Henggeler Antunes, Carlos, 2021. "Business models for energy communities: A review of key issues and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    17. William Hongsong Wang & Vicente Moreno-Casas & Jesús Huerta de Soto, 2021. "A Free-Market Environmentalist Transition toward Renewable Energy: The Cases of Germany, Denmark, and the United Kingdom," Energies, MDPI, vol. 14(15), pages 1-27, July.
    18. Arbulú, Italo & Lozano, Javier & Rey-Maquieira, Javier, 2017. "The challenges of tourism to waste-to-energy public-private partnerships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 916-921.
    19. Meschede, Henning & Holzapfel, Peter & Kadelbach, Florian & Hesselbach, Jens, 2016. "Classification of global island regarding the opportunity of using RES," Applied Energy, Elsevier, vol. 175(C), pages 251-258.
    20. Xie, Li & Kong, Chun, 2023. "The social welfare effect of electricity user connection price policy reform," Applied Energy, Elsevier, vol. 346(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:199:y:2024:i:c:s1364032124002223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.