European Commission announces EUR 1 billion auction for industrial decarbonization

The European Commission has announced a EUR 1 billion auction scheduled for December to support the decarbonization of industrial process heat. Funded through the auctioning of allowances in the EU Emissions Trading System, the Innovation Fund 2026 (IF26) Heat Auction aims to reduce industrial emissions, which currently account for three-quarters of industrial output and are largely fossil-fuel dependent.

The auction will target three technology categories: electrified solutions such as heat pumps and thermal storage, direct renewable heat from solar or geothermal systems, and, for the first time, nuclear technologies like small modular reactors. This initiative is part of the Clean Industrial Deal intended to boost investment in domestic clean energy and increase energy resilience.

In a separate development, the European Climate, Infrastructure and Environment Executive Agency (CINEA) has granted official cross-border status to three renewable energy projects, making them eligible for EU funding. These include the WIND project (Ukraine and Romania), the DEPLOY project (Poland and Germany), and the ZEGA-LINNK project (Austria and Germany). These projects involve wind power, combined wind and solar generation, and a shared heating network.