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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. [Display omitted] • Innovative local energy communities in Europe have significant carbon emissions reduction potential. • Carbon credit issuance could financially support the development of local energy initiatives. • Challenges persist in accessing financing and navigating volatile carbon markets. • Policy support is crucial in establishing clear standards for voluntary carbon markets. [ABSTRACT FROM AUTHOR]

Positive Energy Districts (PEDs) constitute an emerging energy transition paradigm, with an ambitious timeline for rapid upscaling to match the urgency of climate mitigation and adaptation. Increasingly networked and coordinated actors aim to realise 100 PEDs across Europe by 2025. This resonates with the mission orientation turn of the European Green New Deal, to inspire and enable target-driven innovation. Yet it raises questions that have long perplexed scholars and practitioners in energy transitions: how can rapid diffusion be achieved in a sustained and replicable manner in diverse socio-technical contexts? Identifying the key questions to address and implement fit-to-purpose solutions within short-term project timescales is essential in order to mainstream PEDs. Such solutionism must be accompanied by a healthy dose of scepticism, in order to avoid undesirable outcomes such as exacerbated inequalities, societal backlash, and spatial displacement of invisible burdens. But it also requires proactive sharing of experiences, responsive learning and dissemination, and cooperation across sectors and disciplines. In this timely contribution, thirteen researchers from nine European countries flag ten questions concerning PEDs, and offer preliminary responses in line with cutting-edge insights informed by science and practice. This contribution draws on multidisciplinary competence in steering the Positive Energy Districts European Network, and aims to make emerging knowledge widely available, while also inviting constructive critique and engagement within the PED arena which features a broad range of diverse stakeholders. Authors highlight key pathways forward for a rapid, far-reaching translation of the ambitious PEDs agenda into multi-sited, district-scale beacons of sustainable energy transition. • Reflects upon emergent challenges and opportunities of developing PEDs in Europe. • Combines attention to rapid implementation, context-specificity and replicability. • Identifies three key themes to enable conditions for upscaling PEDs across contexts. • The key themes are: framework conditions, prefiguration and emerging impact of PEDs. • Combines expertise of PED-EU-NET core group, spanning PED initiatives across Europe. [ABSTRACT FROM AUTHOR]