The European Commission has announced that it has accepted proposals to revise the legal framework governing the Research Fund for Coal and Steel (RFCS). The reform is intended to strengthen research and innovation support for the decarbonisation and clean transition of Europe’s coal and steel sectors, while reinforcing long-term industrial competitiveness.
The initiative is aligned with the Steel and Metals Action Plan published in March 2025, which highlighted the need to simplify and accelerate investment in steel-related research and innovation across the EU.
RFCS role in de-risking clean steel projects
According to the Commission, the RFCS plays a central role in de-risking research, innovation and decarbonisation projects, helping to preserve Europe’s technological leadership and industrial base. The revised framework is designed to complement other EU policy instruments aimed at maintaining robust steel production within the bloc and supporting strategic autonomy in critical industrial value chains.
By improving alignment with existing EU funding tools, the reform seeks to ensure that RFCS funding is deployed more effectively and reaches a broader range of innovation projects.
Supporting a just transition in coal regions
Beyond steelmaking, the reform is also positioned as a key element of the EU’s just transition strategy for coal mining regions. By increasing the effectiveness and attractiveness of the Fund, the Commission aims to ensure that businesses, researchers and local communities in coal and steel regions can actively participate in the clean transition.
Key funding changes under proposal
The proposed reform introduces several financial and structural changes intended to enhance the impact of EU support.
Annual allocations under the RFCS would increase significantly, with the funding ceiling rising from €111 million to €200 million, accelerating the mobilization of around €800 million for research and innovation investments.
In addition, co-funding rates would be aligned with Horizon Europe, increasing the EU contribution from 50 percent to 70 percent for industry participants and from 70 percent to 100 percent for small and medium-sized enterprises and academic institutions. These changes are expected to improve accessibility, reduce administrative burdens, and strengthen links with other EU instruments such as the Innovation Fund and Horizon Europe.
The legislative proposals will now be submitted to the Council of the European Union and the European Parliament, whose consent is required for one of the decisions under the RFCS legal framework. Discussions and voting in the Council are expected to take place during spring 2026. Subject to approval, the revised framework would enter into force in January 2027 and apply to future RFCS programs following their formal adoption and publication in the EU Official Journal.