Research fund for coal and steel: Council adopts position to make steel and coal industries cleaner and more competitive
The Council has reached agreement (general approach) on a package of two proposals to reform the research fund for coal and steel. The two Council decisions aim to accelerate and simplify research and innovation investments in support of competitiveness, as well as, of green and just transition of the steel industry sector and the coal-mining regions of the EU. The Council’s agreement extends the duration of the programme to 2034 (instead of 2030 as proposed by the Commission) and evenly distributes the annual financial allocation to allow for up to €120 million of investment per year. The Council position also clarifies the objectives of the programme for research and innovation projects related to these areas.
“The approval of the Research Fund for Coal and Steel marks the first General Approach under the Cyprus Presidency; a clear signal of our commitment to tangible, impact-oriented results. This is a key instrument to enhance the competitiveness and sustainability of these critical sectors, essential for Europe’s resilience, economic strength and strategic autonomy. The new rules will simplify access, extend the fund’s duration and strengthen support for SMEs, accelerating the transition to cleaner, more innovative and globally competitive European industries.” (Nicodemos Damianou, Deputy Minister for Research, Innovation and Digital Policy of the Republic of Cyprus)
Simplifying access to coal and steel research funds
The reformed research fund for coal and steel increases annual funding, allowing a total investment of approximately €800 million in research and innovation. The reform raises co-funding rates, aligning them with the Horizon Europe programme: industry participants will now receive up to 70% EU funding, while SMEs, startups and academia can receive up to 100%. These changes are designed to simplify the EU funding landscape and make the fund more attractive, while paving the way for its future integration with other EU programmes such as the Innovation Fund and Horizon Europe.
Next steps
The general approach agreed today formalises the Council’s agreement on the reform package. The adoption of the reformed legal framework for the research fund for coal and steel requires the consent of the European Parliament on one of the Council decisions, and the consultation of the European Parliament on the other. The Council will vote once the procedural steps with the European Parliament have been completed. Once adopted and published in the EU’s official journal, the reform should come into force in January 2027.
Background
The research fund for coal and steel (RFCS) was established in 2002 following the expiry of the European coal and steel community (ECSC) treaty. The fund uses yearly interest from the remaining ECSC assets to support research and innovation projects that enhance the competitiveness of Europe’s coal and steel industries. Separate from the multiannual financial framework, it operates with its own legal basis.
The proposals to revise the RFCS legal framework aims to support the decarbonisation and clean transition of these sectors, while boosting Europe’s competitiveness. The revision aligns the fund’s objectives with EU policies like the competitiveness compass, the clean industrial deal, and the European steel and metals action plan, all which emphasise decarbonisation and clean steel. The reform aims to simplify and accelerate RFCS investments by merging the technical and financial guidelines into a single Council decision detailing the investment strategy for the fund’s assets.
The reform package consists of two Council decisions: one on how to use the financial assets from the ECSC to fund coal and steel research, and another containing multiannual financial and technical guidelines for managing the assets of the fund.
