1 minute read / September 24, 2026
On 24 Sept 2026 the Commission published the final Terms and Conditions(T&Cs) for its second Europe-wide auction for projects decarbonising industrial process heat (IF26 Heat Auction). These processes are largely powered by fossil fuels and represent three-quarters of industrial emissions.
The auction has a planned budget of €1 billion coming from EU Emissions Trading System (ETS) revenues and is expected to open to bidders in early December 2026. Successful bidders will receive a fixed premium subsidy that is linked to its CO2 emissions reductions for up to five years.
Announced in the Clean Industrial Deal the auction will boost investment in homegrown clean energy solutions, strengthening resilience, and reducing energy prices. It follows the successful selection of 65 projects at the first auction, IF25. Both auctions function as pilots for the Industrial Decarbonisation Bank (IDB), that aims to provide €100 billion in funding for industrial decarbonisation.
