Reforming the Coal and Steel Research Fund for a Cleaner Future

What the document addresses
The existing rules for the Research Fund for Coal and Steel (RFCS) are old, complicated and do not match the EU’s current priorities for decarbonisation, industrial competitiveness and a just transition for coal‑ and steel‑regions. The fund’s budget is too low, its calls are infrequent, and the rules for using the assets of the European Coal and Steel Community (ECSC) in liquidation are unclear. As a result, investment in research and innovation in these sectors is slow and unattractive to industry, academia and SMEs.

How the problem is solved
The Council Decision merges the two separate sets of rules that were in Decisions 2003/77/EC and 2008/376/EC into one single decision. It:

• Sets a new multi‑annual budget of EUR 200 million per year for the period 2027‑2030, fully committing the available assets of the ECSC in liquidation.
• Introduces bi‑annual calls for proposals (two deadlines each year) and a single funding rate per project: up to 100 % of eligible costs for SMEs and up to 70 % for for‑profit entities.
• Allows up to 25 % indirect costs to be covered by a lump‑sum or unit cost, and removes the old “big‑ticket” call structure.
• Uses the mutual insurance mechanism to reduce guarantees required from applicants.
• Aligns the RFCS rules with Horizon Europe, the Clean Industrial Deal, the Competitiveness Compass and the European Steel and Metals Action Plan, ensuring that the fund supports near‑zero‑carbon steelmaking, clean coal transition and dual‑use research.
• Simplifies application and evaluation procedures, introduces clearer security rules for dual‑use projects, and requires regular technical and financial reporting.
• Gives the Commission the power to manage the assets, invest them prudently, and provide annual or semi‑annual payments to fund the calls.

Changes that result from the document

• Repeal of old decisions – Decisions 2003/77/EC and 2008/376/EC are cancelled.
• New technical and financial guidelines – a single decision replaces the two previous ones, making the framework easier to understand and apply.
• Higher budget and faster funding – the fund’s envelope rises to EUR 200 million per year, with all money committed by 2030.
• More attractive funding rates – SMEs can receive 100 % of costs, for‑profit entities 70 %, and indirect costs are simplified.
• Bi‑annual calls – two calls per year instead of the previous annual or “big‑ticket” calls.
• Improved asset management – the Commission will invest the ECSC assets to preserve or increase their value and to provide liquidity for the research calls.
• Enhanced reporting and monitoring – annual reviews, technical reports, and a final activity review will be carried out, with results shared with the Coal and Steel Committee.
• Effective date – the decision takes effect 20 days after publication and is fully applicable from 1 January 2027.

These changes aim to make the RFCS a more flexible, attractive, and efficient instrument for funding research and innovation that supports the EU’s decarbonisation and industrial competitiveness goals.