Transport Scotland Funding for Zero Emission Bus Market Transitions

Grants available to help SME bus and coach operators, local authorities and community transport organisations move towards a zero-carbon bus sector.

Funded by Transport Scotland and administered by Energy Saving Trust, this fund will help SME bus and coach operators, local authorities and community transport organisations understand the steps required to replace their fleet with zero emission alternatives.

This support will mean they are well positioned to apply for the Scottish Zero Emission Bus Challenge Fund (ScotZEB) Phase 2 funding, which is expected to launch early in financial year 2023/24.

The Scheme aims to encourage and enable a step-change in progress towards zero emission buses across Scotland. There are three streams with different specific aims:

  • Stream 1 is aimed at supporting SME bus and coach operators, community and school bus providers to assess which zero emission technology is best for them and how it can be implemented
  • Stream 2 is aimed at encouraging significant disruption to the market. Funding is available for developing collaborations across the operating, manufacturing, energy and finance sectors to bring scaled up, innovative bids to ScotZEB Phase 2 that will alter the market and bring in more private financing
  • Stream 3 is aimed at demonstrating the potential role that the repowering of older diesel buses can play in the transition to net zero, recognising that repowering may be a more cost-effective option for SME operators, and may create additional green jobs in Scotland.

SME public service bus and coach operators, home-to-school transport providers, community transport providers and Scottish local authorities are eligible to apply.

A total of £500,000 has been made available for 2022/23, with maximum funding per applicant in each stream as follows:

  • Stream 1: Applicants can apply for up to £10,000.
  • Stream 2:  Applicants can apply for up to £25,000.
  • Stream 3: Applicants can apply for up to £100,000.

Funding can cover 100% of eligible costs, up to the maximum values noted above.

The deadline for applications is 9 December 2022. Although the scheme may close earlier if the grant is fully allocated so early applications are encouraged.

(This report was the subject of a GRANTfinder Newsflash.)