The European Council has announced that it has reached a general approach on reforming the Research Fund for Coal and Steel (RFCS), approving a package of two Council decisions designed to accelerate and simplify research and innovation investment in the coal and steel sectors.
Program extended to 2034 with €800 million funding
Under the Council’s position, the duration of the program will be extended to 2034 instead of 2030 as initially proposed by the European Commission. Annual financial allocations will be distributed evenly, enabling investments of up to €120 million per year.
Overall, the reform is expected to mobilize approximately €800 million in research and innovation funding over the extended period.
Stronger focus on decarbonization and competitiveness
The revised framework clarifies the fund’s objectives, placing greater emphasis on enhancing competitiveness, supporting decarbonization of the European steel industry and ensuring a just transition in coal-mining regions.
Co-funding rates will be aligned with the Horizon Europe framework. Industrial participants will be eligible for up to 70 percent EU funding, while SMEs, start-ups and academic institutions may receive up to 100 percent support.
The reform is also intended to simplify access to EU funding and increase the fund’s attractiveness while facilitating closer integration with other EU instruments such as the Innovation Fund and Horizon Europe.
Entry into force expected in 2027
Final adoption of the revised legal framework requires the consent of the European Parliament for one decision and consultation for the other.
Following completion of the procedural steps and publication in the EU Official Journal, the reformed Coal and Steel Research Fund is expected to enter into force in January 2027.
