The European Commission has awarded €400 million to 65 industrial heat decarbonization projects in 10 European countries under the Innovation Fund's first heat auction. These projects aim to deploy electrified and renewable heat technologies in energy-intensive industries such as pulp and paper, glass, and steel, with the goal of avoiding over 6.6 million tonnes of CO2 emissions and producing 16.3 TWh of decarbonized heat in their first five years of operation. The funding, sourced from EU Emissions Trading System revenues, requires projects to reach financial close within two years of signing grant agreements. This initiative is considered a pilot for the future Industrial Decarbonization Bank under the Clean Industrial Deal.