The second European auction to decarbonise industrial heat will have 1,000 million euros

The European Commission has published the final terms and conditions (T&Cs) of its second European auction for industrial process heat decarbonisation projects, the IF26 heat auction, with an expected budget of €1 billion from revenues from the EU’s emissions trading system. The call is scheduled to open to bidders in early December 2026 and will award successful bidders with a flat premium grant linked to CO₂ emission reductions for up to five years. The European Commission has published the final terms and conditions for the second European industrial heat decarbonisation auction. The mechanism targets industrial processes that are currently heavily dependent on fossil fuels and account for three-quarters of industrial emissions.

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