The European Commission has approved proposals to revise the legal framework of the Research Fund for Coal and Steel (RFCS), seeking to strengthen support for decarbonisation, clean technologies and industrial innovation across Europe’s coal and steel sectors.
The reform aligns with the Steel and Metals Action Plan published in March 2025, which called for faster and simpler investment mechanisms to support low-carbon steelmaking.
Boosting innovation and de-risking clean steel projects
According to the Commission, the RFCS plays a critical role in de-risking research and innovation projects, helping preserve Europe’s technological leadership and industrial base. The revised framework aims to improve alignment with other EU funding instruments to ensure more efficient and impactful deployment of resources.
Higher funding and improved co-financing
Under the proposal, the RFCS annual funding ceiling would rise from €111 million to €200 million, enabling the mobilization of approximately €800 million for research and innovation investments.
Co-funding rates would also increase, aligning with Horizon Europe rules:
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EU contribution to industry projects rising from 50% to 70%
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Up to 100% funding for SMEs and academic institutions
These changes are expected to reduce administrative burdens, improve accessibility, and strengthen synergies with the Innovation Fund and Horizon Europe.
Next steps
The legislative proposals will now be submitted to the EU Council and the European Parliament, with discussions expected in spring 2026. Subject to approval, the revised RFCS framework would enter into force in January 2027.
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