Skip to main content

Low Carbon Transport Business Loan

Location notice

Please note that this page contains information and links most relevant for people living in Scotland.

The low carbon transport loan aims to support organisations that want to reduce the carbon impact and fuel costs of their transport and travel arrangements with new, more efficient alternatives.

Interest-free loans of up to £120,000 are available to Scottish businesses to help lower their transport and travel costs.  These loans are funded by Transport Scotland (an agency of the Scottish Government) and have a repayment term of up to 6 years.

Business loans can be used to meet the cost of a wide range of sustainable measures to lower your business transport carbon footprint including:

  • pure electric vehicles (cars and vans) (up to £28,000 for each new electric vehicle purchased)*
  • new electric motorcycles or scooters (up to £10,000 for each vehicle purchased)*
  • new electric / plug-in hybrid HGVs (Heavy Good Vehicles) (up to £50,000 for each HGV purchased; applications to be considered on a case by case basis)
  • vehicle efficiency devices such as telematics systems
  • video and tele conferencing facilities

Please note that in order to be eligible for this loan, your business must be operational for a minimum of 12 months.

*The new pure electric vehicle or new electric motorcycle / scooter purchased must be included on our list of eligible makes and models.

From 28 September 2020, the Low Carbon Transport Loan was extended to cover used electric vehicles. See more information about the Used Electric Vehicle Loan.

Before applying for a loan you need to complete our online business enquiry form and one of our sustainable transport coordinators will be in touch to arrange a sustainable transport review (STR). Only when the need for and benefit of the sustainable transport measures have been identified in an STR will you be eligible for a business loan and able to submit your application.

Please note that the latest version of an application form should only be obtained through a sustainable transport coordinator.

Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. This loan is subject to availability and terms and conditions apply.

Transport for Scotland Logo