Coal and Steel Research Fund: Council adopts position to make steel and coal industries cleaner and more competitive

The Council has reached an agreement (general approach) on a package of two proposals to reform the Coal and Steel Research Fund. The two Council Decisions aim to accelerate and simplify investments in research and innovation to promote competitiveness and a green and just transition for the steel sector and mining regions in the EU. The Council’s agreement extends the duration of the programme until 2034 (instead of 2030 as proposed by the Commission) and distributes the annual financial allocation evenly to allow for an investment of up to EUR 120 million per year. The Council’s position also clarifies the programme’s objectives for research and innovation projects in these areas.

The approval of the Coal and Steel Research Fund is the first general orientation of the Cypriot Presidency, demonstrating our determination to achieve tangible and impactful results. It is a key instrument for improving the competitiveness and sustainability of these critical sectors, which are essential for Europe’s resilience, economic strength and strategic autonomy. The new rules will simplify access, extend the duration of the Fund and strengthen support for SMEs, accelerating the transition to cleaner, more innovative and globally competitive European industries.

Nicodemos Damianou, Deputy Minister for Research, Innovation and Digital Policy of the Republic of Cyprus

Easier access to coal and steel research funds

The reformed Coal and Steel Research Fund increases annual funding, allowing for a total investment of approximately €800 million in research and innovation. The reform increases co-financing rates, bringing them into line with the Horizon Europe programme: industry participants will now receive up to 70% EU funding, while SMEs, start-ups and academia will be eligible for up to 100%. These changes are designed to simplify the EU funding landscape and make the Fund more attractive, paving the way for its future integration with other EU programmes, such as the Innovation Fund and Horizon Europe.

Next steps

The general approach agreed today formalises the Council’s agreement on the reform package. In order for the reformed legal framework for the Coal and Steel Research Fund to be adopted, the European Parliament must give its approval to one of the Council Decisions and be consulted on the other. The Council will vote once the stages of the procedure with the European Parliament have been completed. Following its adoption and publication in the Official Journal of the EU, the reform should enter into force in January 2027.

Context

The Coal and Steel Research Fund was established in 2002 following the expiry of the Treaty establishing the European Coal and Steel Community (ECSC) and uses the annual interest on the remaining ECSC assets to support research and innovation projects that improve the competitiveness of the European coal and steel industries. It is independent of the multiannual financial framework and operates on its own legal basis.

The proposals to revise the legal framework of the Coal and Steel Research Fund aim to promote decarbonisation and the clean transition of these sectors, as well as to boost European competitiveness. The revision aligns the Fund’s objectives with EU policies such as the Compass for Competitiveness, the Clean Industry Pact and the European Action Plan for Steel and Metals, which emphasise decarbonisation and clean steel. The aim of the reform is to simplify and accelerate investments by the Coal and Steel Research Fund by merging the technical and financial guidelines into a single Council Decision detailing the investment strategy for the Fund’s assets.

The reform package consists of two Council Decisions: one on how to use the ECSC’s financial assets to finance coal and steel research, and another containing the multiannual financial and technical guidelines for the management of the Fund’s assets.

More information: European Council.