It supports companies that replace fossil-fuel-based heat with electrified solutions such as industrial heat pumps, electric boilers, induction and resistance heating, thermal storage, by paying a fixed premium for every tonne of CO₂ avoided, over a period of up to five years.

Unlike a classic grant, it can cover both the investment and part of the additional operating cost that electrification creates, which is usually the point where the internal business case breaks down.

The second edition is expected to open in early December 2026, with a budget of €1 billion and submissions running until February 2027.

Interest in the first round was strong with 85 projects submitted and 65 selected for funding – yet not a single Romanian company was among the awardees, and the instrument remains largely unknown in the market.

For industrial operators with decarbonisation plans already on the table, this is a rare window: a competitive auction where a well-prepared bid has a realistic chance, and where the money follows the CO₂ actually avoided.

Join us to understand

• How the mechanism works in practice: which technologies and capacity thresholds qualify, how the premium is calculated and paid, what the indicative budget split between medium- and high-temperature heat means for different sectors, and what the calendar requires companies to have ready.

• What evaluators actually rewarded in the first edition: how bids were priced, where applicants lost points, and which assumptions held up under scrutiny – drawn from Schuman Associates direct experience of supporting four successful projects in the 2025/2026 round.

In the open Q&A session at the end of the workshop, we invite participants to test your own project ideas against the rules while there is still time to act.

What participants take away

• A clear view of whether your heat decarbonisation project fits the instrument, and against which budget window.

• An understanding of how the premium per tonne of CO₂ avoided translates into cash flow over the support period.

• The practical 'dos and don'ts' of bid preparation and pricing, based on the first edition

• A realistic timeline for what has to be in place before the December 2026 opening/ February 2027 expected deadline.

• A follow-up one-pager summarising the instrument and the key deadlines.