The initiative is consistent with the Steel and Steel Industry Action Plan published in March 2025, which highlighted the need to simplify and accelerate investments in steel-related research and innovation across the EU.
The role of RFCS in reducing the risks of clean steel projects
According to the Commission, RFCS plays a central role in reducing the risks of research, innovation and decarbonization projects, helping to maintain Europe's technological leadership and industrial base. The revised framework is intended to complement other EU policy instruments aimed at maintaining sustainable steel production in the bloc and supporting strategic autonomy in critical industrial value chains.
By improving consistency with existing EU funding instruments, the reform aims to ensure that RFCS funding is used more effectively and covers 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 equitable strategy for the transition to coal-producing regions. By increasing the effectiveness and attractiveness of the Fund, the Commission aims to ensure that businesses, researchers, and local communities in coal and steel regions can actively participate in the clean transition.
Key financing changes under the proposal
The proposed reform introduces several financial and structural changes aimed at strengthening the impact of EU support.
The annual allocation under the RFCS will increase significantly, with the funding ceiling rising from 111 million euros to 200 million euros, accelerating the mobilization of about 800 million euros for research and innovation investments.
In addition, co-financing rates will be aligned with Horizon Europe, increasing the EU contribution from 50 to 70 percent for industry participants and from 70 to 100 percent for small and medium-sized enterprises.
