On 24 June 2026, the Council of the European Union adopted a Decision establishing a new Research Programme for the Research Fund for Coal and Steel (RFCS), repealing the previous Decisions 2003/77/EC and 2008/376/EC. The new rules, effective from 1 January 2027, overhaul the fund to accelerate the green transition, requiring that all available assets be committed within eight years to improve programme impact and leverage private investment.
The Decision supports collaborative, industry-led research to enhance the competitiveness of the coal and steel sectors, including dual-use applications, and promotes clean steel breakthrough technologies for climate neutrality and EU strategic autonomy. It also funds research for managing the just transition of closing or closed coal mines and affected regions, aligning with the EU's objective to phase out fossil fuels by 2050 and revitalise coal regions. Actions will be financed through open calls covering all Technology Readiness Levels, with a mutual insurance mechanism extended from Horizon Europe to cover non-recovery risks. Research project reports will be shared with the innovation centre established under Directive 2010/75/EU for monitoring technological progress.
The Commission may enlarge eligible investments to include other asset classes and currencies of advanced economies, subject to hedging. Derogations allow in-kind contributions as eligible costs and exclude valorisation income from action revenues. Decision 2008/376/EC will continue to apply to calls published up to 31 December 2026.
Stakeholder impact The new rules have significant implications for several stakeholders. EU coal and steel producers will benefit from continued research funding but face pressure to align with green transition goals and commit to phasing out fossil fuels. EU research institutions and industry consortia gain access to open calls across all technology readiness levels, with improved risk coverage through the mutual insurance mechanism. EU taxpayers and environmental groups may view the accelerated asset commitment and focus on clean technologies positively, though concerns about the pace of the just transition for coal regions remain. EU Member States with coal-dependent regions will need to manage the social and economic impacts of mine closures, supported by research funding for revitalisation.
Institutional follow-up The Decision enters into force on 1 January 2027. The Commission will implement the programme through annual work programmes and open calls. The European Parliament and Council will monitor progress as part of the Horizon Europe framework. The innovation centre under Directive 2010/75/EU will receive research reports to track technological advancements.