Please note that this page contains information and links most relevant for people living in Scotland.
The low emission zone support fund is now closed to new applications
The Low Emission Zone Support Fund and Travel Better Fund have now closed to new applications for this financial year. Previously submitted applications will continue to be processed and funding offered on a first-come, first-served basis, subject to availability.
Energy Saving Trust is offering micro businesses and sole traders, with an operating site within 20km of Scotland's low emission zones, a grant towards the safe disposal of non-compliant vehicles.
Low emission zones in Glasgow, Edinburgh, Aberdeen and Dundee are in effect. Low emission zones are designed to improve local air quality by discouraging older, more polluting vehicles from entering the zone.
About the low emission zone support fund for businesses and sole traders
The low emission zone support fund is funded by Transport Scotland and administered by Energy Saving Trust. It offers an incentive for eligible businesses to take their older, more polluting vehicles off the road.
Grants of £2,000 are available to sole traders and micro businesses with nine or fewer full-time employees. Successful applicants will be required to dispose of their vehicle at a Scottish authorised treatment facility. A grant offer must be in place prior to vehicle disposal.
Following vehicle disposal and successful receipt of the fund, eligible businesses will be offered an additional £1,000 towards the purchase of a cargo or electric cargo bike option through the travel better fund for businesses.
Important: this fund has now closed to new applications. There is no guarantee funding will be renewed in the new financial year, but if you wish to register your interest for any future funding, you can complete the self-referral form below.
The vehicle must be registered in the name of the business owner or under the business name as stated on the submitted application.
You must have owned the vehicle before 17 September 2020 and utilise it for business operational purposes.
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.
The low emission zone support fund cannot be used in conjunction with Transport Scotland’s switched on taxis loan or low carbon transport loan. This is a standalone fund, and the applicant must not apply for additional 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.
A business may apply to dispose of a maximum of three vehicles under this fund. If a business has previously received funding for three vehicles through the low emission zone retrofit fund, they are unable to apply for further funding through the support fund.
You must commit to replacing the vehicle with a zone compliant model if a replacement vehicle is required for business needs.
This fund has been made available to help applicants avoid low emission zone penalties by moving away from non-compliant vehicles and choosing more sustainable travel options or replacement vehicles that meet the low emission zone standards.
If you successfully claim the low emission zone support fund and choose to move towards sustainable travel, we can reimburse your business up to £1,000 towards the purchase of a cargo or electric cargo (ecargo) bike option.
Eligible travel measures include:
A cargo bike is a cycle that has been specifically designed to carry a load, while ecargo bikes have an electric motor to help support heavier loads and longer distances. There are many different types of cargo bikes available, covering a range of business needs.
Important: the Travel Better Fund has now closed to new applications for this financial year. Applicants who receive payment for their Low Emission Zone Support Fund claim after this date will not be eligible to apply for Travel Better in this financial year (2023/2024), but will be invited to apply if funding becomes available in the new financial year (2024/2025).
In addition to the above grant value, additional costs can be covered by Energy Saving Trust’s interest-free ebike business loan (up to £6,000).
Items which are NOT eligible for the Travel Better Fund for businesses include:
non-cargo format cycles
cycling accessories such as helmets and lights
bike maintenance, repairs or servicing
cars, mopeds, motorbikes or any other form of motorised transport
electric scooters, scooters, skateboards, hoverboards
Fund application and disposal process
Please refer to the below diagram for a detailed visualisation of the application process.
Case study - Harajuku Kitchen
Meet Keith and Kaori, the owners of Harajuku Kitchen, an authentic Japanese restaurant with locations in Edinburgh’s Bruntsfield, Stockbridge market and St James Quarter. In preparation for the introduction of Edinburgh’s Low Emission Zone, they took advantage of Energy Saving Trust’s Low Emission Zone Support Fund for businesses to dispose of their older, more polluting van and replace it with a newer model.
Terms and conditions
Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. This fund is subject to availability and terms and conditions apply.