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Funding

Low Emission Zone Support Fund for businesses

Location notice

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

Energy Saving Trust is offering micro businesses and sole traders, with an operating site within 20km of the low emission zones, a £2,500 grant towards the safe disposal of non-compliant vehicles.

The Scottish Government is introducing low emission zones across Glasgow, Edinburgh, Aberdeen and Dundee between February and May 2022. Low emission zones are designed to improve local air quality by discouraging older, more polluting vehicles from entering the zone.

For more information, please visit our dedicated low emission zone webpage.

About the Low Emission Zone Support Fund for businesses and sole traders

The Low Emission Zone Support Fund, funded by Transport Scotland and administered by Energy Saving Trust, offers an incentive for eligible businesses to take their older, more polluting vehicles off the road.

Grants of £2,500 are available to micro businesses with nine or fewer full-time employees and sole traders who take a non-compliant vehicle to be scrapped at a Scottish authorised treatment facility. A grant offer must be in place prior to vehicle disposal.

For more information, please read our Low Emission Zone Support Fund leaflet for businesses.

How to apply?

To apply to the Low Emission Zone Support Fund for businesses, please review the eligibility criteria below and complete our business transport online form.

You MUST NOT scrap your vehicle until you have received a grant offer letter from Energy Saving Trust confirming your eligibility, otherwise you will not be eligible for funding.

Eligibility criteria

To be eligible for the Low Emission Zone Support Fund, you must meet all of the following criteria (you can also download the eligibility criteria):

1. Your business must have an operating site within 20km of a planned low emission zone. If you are unsure, a sustainable transport coordinator will be able to confirm this.

2. Your business must own a vehicle that does not meet the minimum emissions standards of low emission zones:

  • Euro 3 or older petrol vehicles – this generally applies to those registered before 2006
  • Euro 5 or older diesel vehicles – this generally applies to those registered before September 2015

You can use the Vehicle Checker to see whether your vehicle would be allowed to enter a zone.

The vehicle must hold a current MOT and be taxed. If you are unsure, you can check online if your vehicle is taxed and its MOT status.

3. You must have owned the vehicle for at least 12 months and utilised it for business operational purposes:

4. Your business must be an active micro business or a sole trader. To fit this definition, you must:

  • employ nine or fewer full-time employees
  • have a turnover of £632,000 or less, or a balance sheet of up to £316,000 in the preceding and current financial year

5. The Low Emission Zone Support Fund cannot be used in conjunction with Transport Scotland’s Low Emission Zone Retrofit Fund, Switched on Taxis Loan or Low Carbon Transport Loan. This is a standalone fund and the applicant must not apply for the aforementioned funding until six months following grant payment from the Low Emission Zone Support Fund. In addition, the applicant must not have received funding from these programmes six months prior to applying.

If you wish to apply for this funding, you MUST NOT scrap your vehicle until you have received a grant offer letter from Energy Saving Trust confirming funding.

If you would like additional information on the scheme, please email: [email protected]

This support fund has been made available to help applicants avoid low emission zone penalties by moving away from non-compliant vehicles. We expect applicants to replace the scrapped vehicle with sustainable travel options, choosing to travel better where possible. We expect applicants who plan to purchase another vehicle to replace the scrapped vehicle with one that meets the low emission zone standards, therefore avoiding future penalties and helping to improve local air quality.

If you do not meet the eligibility criteria for the Low Emission Zone Support Fund for businesses, you may be interested in the following funds and loans:

View information and eligibility on the Low Emission Zone Support Fund for households.

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

Last updated: April 16th, 2021