The European Commission has confirmed a second edition of the European auction aimed at decarbonising industrial heat, scheduled for 2026 and backed by a budget of €1 billion. The announcement follows the strong demand recorded during the first Innovation Fund Heat Auction and reinforces the role of clean thermal technologies within Europe’s industrial and climate strategy.

The initiative seeks to accelerate the replacement of fossil fuels in industrial processes through solutions such as heat pumps, direct electrification and other renewable technologies applied to heat production. Industry associations such as the European Heat Pump Association (EHPA) consider this continuity to provide a signal of stability for manufacturers and investors in a context shaped by the need to reduce energy costs and strengthen European industrial autonomy.

Beyond its climate dimension, the debate reflects growing political attention towards industrial heat, an area historically less visible than electricity, yet crucial for achieving Europe’s climate neutrality and economic competitiveness objectives.