The EU Council has agreed its general approach on a package of two proposals to reform the Research Fund for Coal and Steel (RFCS), aimed at accelerating and simplifying investment in research and innovation to support competitiveness and the green and just transition of the steel sector and coal-mining regions.
Under the Council’s position, the programme’s duration will be extended to 2034, rather than 2030 as originally proposed by the European Commission. Annual allocations will be evenly distributed, enabling up to €120 million in investment per year. The revised framework also clarifies the objectives for research and innovation projects in coal and steel.
The reform increases annual funding, allowing for total investment of around €800 million in research and innovation. Co-funding rates will be raised and aligned with Horizon Europe. Industry participants will be eligible for up to 70% EU funding, while SMEs, start-ups and academic institutions may receive up to 100%. The changes are intended to simplify access to EU funding and enhance the fund’s attractiveness, while preparing for closer alignment with programmes such as Horizon Europe and the Innovation Fund.
The general approach formalises the Council’s position. Adoption of the revised legal framework requires the consent of the European Parliament for one decision and consultation on the other. Following completion of the parliamentary procedures and a final Council vote, the reform is expected to enter into force in January 2027.
The RFCS was established in 2002 after the expiry of the European Coal and Steel Community treaty. It is financed through annual interest generated by the remaining ECSC assets and operates outside the EU’s multiannual financial framework under its own legal basis.
The revision seeks to align the fund more closely with EU policy priorities, including industrial competitiveness, decarbonisation and clean steel production, in line with initiatives such as the Clean Industrial Deal and the European Steel and Metals Action Plan. The reform package consists of two Council decisions: one governing the use of ECSC assets to fund research, and another setting out multiannual financial and technical guidelines for managing the fund.
