The European Commission has formally approved the government's €2 million Fuel Support Scheme for Specialist Horticulture.
The state aid scheme aims to support horticulture companies facing increased fuel prices due to the Middle East crisis.
In a statement issued today (Friday, July 10), the commission said the scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF).
This framework was adopted by the commission on April 29, 2026 to support the EU economy from the impacts of the US-Iran war.
The horticulture support scheme will run until December 31, 2026.
It aims to mitigate the impact of the increase in fuel prices on companies active in the primary production of agricultural products, in particular growers of fruit and vegetable crops using heated horticultural structures.
The aid will take the form of direct grants and will cover the additional fuel costs resulting from the Middle East crisis incurred between March 1 and December 31, 2026.
The commission said it assessed the scheme under EU state aid rules and found that the scheme is in line with the conditions set out in the METSAF.
"In particular, aid will be granted based on a scheme with a clear estimated budget and will be provided to temporarily support the development of companies active in primary production of agricultural products," the commission said.
"The commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.
"On this basis, the commission approved the Irish scheme under EU state aid rules."
The scheme opened for applications last month.
Minister Heydon said specialist horticulture growers have seen "substantial increases in their fuel costs" over the past number of months.
He said this is "placing further pressure on a sector that has already endured significant increases in input costs over recent years".
"The support provided under this scheme will help to mitigate against the additional fuel costs faced by growers," he said.