Commission proposes reform of the Research Fund for Coal and Steel to accelerate and simplify investments

Today, the Commission adopted a package of proposals COM(2025)759 and COM(2025)760 to revise the legal base of the Research Fund for Coal and Steel. The proposals provide for research and innovation funding aimed at supporting the decarbonisation and clean transition of the coal and steel sectors and strengthening Europe's competitiveness.

As announced in the Steel and Metals Action Plan of March 2025, the proposed reform of the Research Fund for Coal and Steel aims to simplify and accelerate investments in steel research. The Fund helps to de-risk investments in research, innovation and decarbonisation projects, to maintain Europe's technological and industrial leadership. It also complements other measures to help ensure a robust steel production in Europe, promoting its strategic autonomy.

At the same time, this is an important initiative to support the just transition of coal mining regions in Europe. Thanks to this reform, the Fund will become more attractive and impactful for coal and steel sectors to drive a fair, clean and competitive transition. This will help businesses, researchers and citizens, especially from steel-producing and coal mining regions, to benefit from this transition and secure future jobs.

More impactful and attractive EU funding for decarbonisation

The Research Fund for Coal and Steel reform proposals presented today allow for:

• higher annual allocations that increase the previous ceiling from €111 million to €200 million, to accelerate the availability of funding of around €800 million to be invested in research and innovation under the Fund; and
• higher co-funding rates that will be aligned with those of the Horizon Europe research and innovation funding programme and thus increase the share of EU funding for projects from 50% to 70% for industry participants and from 70% to 100% for small and medium-sized businesses (SMEs) and academia participants.

This will not only increase the attractiveness of the Fund, but it will also contribute to simplifying the overall EU funding landscape, making it easier for potential beneficiaries to navigate it. Finally, today's reform proposals facilitate the bridging towards other EU funding programmes in the future, such as the Innovation Fund and Horizon Europe programme.

Next steps

Today's proposals for two Council Decisions will now be submitted to the Council of the EU for agreement and to the European Parliament, whose consent is required on one of the proposed decisions, according to the legal basis for the Research Fund for Coal and Steel.

The reform will be subjected to discussions and voting in Council over the course of spring 2026 and should then enter into force and be implemented as of January 2027 for future programmes under the Research Fund for Coal and Steel, after their adoption by the Council and publication in the EU Official Journal.

Background

The reform package adopted today by the Commission consists of two proposals for Council Decisions that replace previous Decisions. One proposal sets out how the financial assets from the European Coal and Steel Community are now used to fund coal and steel research, while the other proposal sets the multiannual financial and technical guidelines for managing the assets of the Fund.

The Research Fund for Coal and Steel co-finances projects with the industry and academia in the areas of steel decarbonisation and coal transition through research and innovation grants. These projects are industry-led, with a strong participation from universities and research centres. The Fund has separate legal bases existing outside the Multiannual Financial Framework. It is funded via the remaining assets and revenues generated by the former European Coal and Steel Community. As indicated in Protocol 37 annexed to the Treaties, these funds must be exclusively devoted to research in sectors related to the coal and steel industry.

More information

Proposal for a COUNCIL DECISION laying down the measures necessary for the implementation of Protocol No 37

Proposal for a COUNCIL DECISION on the adoption of the Research Programme of the Research Fund for Coal and Steel on the multiannual technical guidelines for this programme

Clean Industrial Deal

European Steel and Metals Actions Plan

Research Fund for Coal and Steel - Funding opportunities explained