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<strong class="journal-contentHeaderColor">Abstract.</strong> Flux measurements have started to play an important role outside academia in assessing carbon sinks of different ecosystems and land-use types. If natural carbon solutions are to be deployed and monetized in carbon markets, more low-powered and low-cost flux systems should be deployed. There is a growing need for low-cost sensors that still fulfil the requirements for scientific applications. We present a case study where Vaisala company and the University of Helsinki joined their industrial and academic competencies to create an inexpensive yet precise fast-response carbon dioxide (CO<sub>2</sub>) and water vapour (H<sub>2</sub>O) sensor. A working prototype was developed and field-tested against a scientific reference eddy covariance (EC) setup. Special attention was paid to response time, lowered sampling frequency, and auto-calibration related to the temperature. The results at the end of the project were very promising. The enclosed-path EC prototype had a CO<sub>2</sub> response time of 0.18 sec and a noise level of 1 ppm at a 5 Hz sampling rate. The internal auto-calibration procedure was continuously improved such that CO<sub>2</sub> signal drifting was avoided and the instrument was capable of measuring CO<sub>2</sub> fluxes with high correlation relative to the reference EC setup (R<sup>2</sup> = 0.98).