The European Commission has announced that it has adopted proposals to review the legal framework governing the activities of the Coal and Steel Research Foundation (RFC). The reform aims to strengthen support for research and innovation for decarbonization and the transition to environmentally friendly technologies in Europe's coal and steel sectors, while increasing the industry's long-term competitiveness.
The initiative is aligned with the Steel and Metals Action Plan published in March 2025, which highlights the need to simplify and accelerate investments in steel-related research and innovation across the EU.
The role of RFCs in reducing risks in clean steel projects
According to the Commission, the RFC plays a central role in reducing risks in research, innovation and decarbonization projects, helping to maintain Europe's technological leadership and industrial base. The revised framework is designed to complement other EU policy instruments aimed at maintaining stable steel production within the bloc and supporting strategic autonomy in critical production value chains.
By improving compliance with existing EU financing instruments, the reform aims to ensure more efficient use of RFC funds and reach a wider range of innovative projects.
Support for a fair transition in coal regions
In addition to steel production, the reform is also positioned as a key element of the EU's strategy for a fair transition to coal-producing regions. By increasing the effectiveness and attractiveness of the Fund, the Commission aims to ensure that enterprises, researchers and local communities in coal and metallurgical regions can actively participate in the transition to environmentally friendly technologies.
Major changes in financing under the proposal
The proposed reform includes a number of financial and structural changes aimed at strengthening the impact of EU support.
The annual allocation under the RFC will increase significantly, and the maximum amount of funding will increase from 111 million euros to 200 million euros, which will accelerate the mobilization of about 800 million euros for research and innovation investments.
In addition, co-financing rates will be aligned with Horizon Europe, which will increase the EU contribution from 50 to 70 percent for industry participants and from 70 to 100 percent for small and medium-sized enterprises and academic institutions. These changes are expected to improve accessibility, reduce administrative burden, and strengthen ties with other EU instruments such as the Innovation
