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Grants and loans

Scottish zero emission bus challenge fund (phase II)

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

What is the Scottish zero emission bus challenge fund (ScotZEB) grant fund?

The Scottish government is supporting bus and coach operators, manufacturers, local authorities, financiers and the energy sector to make the market for zero-emission vehicles and infrastructure commercially self-sustaining. This means that the market can run and operate on its own without further funding from the government.  

The deadline for new applicants to apply for Phase 2 of the funding has now passed, however, there is still an opportunity for any or all members of unsuccessful consortium bids to benefit directly from ScotZEB 2 funding, as is outlined below.

What is Phase 2 of ScotZEB?

Phase 1 

Phase 1 ran in 2021 and saw over £62 million in grants awarded to nine bus operators and local authorities for 276 zero-emission buses and charging infrastructure. You can read case studies from Phase 1 on the Confederation of Passenger Transport website

Market transition scheme 

The Market Transition Scheme followed in 2022. This scheme awarded £368,000 in grant funding to small to medium sized enterprise (SME) bus and coach operators to help them take the steps they need to take to replace their fleets with zero-emission alternatives.  

Phase 2 

Phase 2 of ScotZEB is designed to provide capital funding to companies that are helping to make zero-emission vehicles the default choice for all bus, coach and community transport operators from now on.   

The deadline for new applicants to apply for Phase 2 of the funding has now passed. However, there is still an opportunity for any or all members of unsuccessful consortium bids to benefit directly from ScotZEB 2 funding.  

The two bids that scored the highest overall remain under consideration, and the lead applicants for those two bids, Rock Road and Zenobe, are being given until 19 January 2024 to provide their final and best bid. They have been informed that members of other consortium bids may be in contact in connection with this exercise and that they may incorporate new members into their consortia at this stage should they choose to. 

All affected parties have been contacted via email and informed that should any agreement be reached with Rock Road or Zenobe about joining their consortium bid at this stage, buses, coaches and infrastructure that are included in one consortium bid MUST NOT also be included in the other consortium bid. 

For more detailed information, please see our guidance document.   

You can also see our ScotZEB2 FAQ document. 

Next steps

The best and final bids from Rock and Zenobe will be assessed against the same criteria and using the same scoring matrix, as previous bids.

Transport Scotland will meet to discuss the process with the lead bidders, separately, and will then meet and discuss the process with the Director of the Confederation of Passenger Transport Scotland, as a representative of the bus and coach sector. 

The deadline for the final and best bids is 4:59pm on 19 January 2024.

Transport Scotland remains under no obligation to make any awards from the Scottish Zero Emission Bus (Phase 2) challenge fund.

The deadline for new applicants to apply for Phase 2 of the funding has now passed.

For general enquiries, you can contact the project team via email at scotzeb2@est.org.uk.

Last updated: 27 November 2023