The Cost of CO2 Emissions Abatement in Micro Energy Communities

In 2027, Europe will introduce a new cap-and-trade market (EU ETS2) for CO2 emissions from fuel combustion in buildings and other sectors. The residential sector is firmly moving towards the electrification of thermal services and the development of energy communities with collective energy systems, though these solutions are often perceived as expensive. How do traditional energy systems combined with paying the European emission tax to offset emissions affordability-wise compare to sustainable energy communities that structurally reduce CO2 emissions in the built environment? Our findings demonstrate that micro energy communities are a viable and cost-effective solution for a sustainable future, given a more balanced electricity-to-gas price ratio.