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Transport grants and loans

Scottish zero emission bus challenge fund

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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 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.  

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What are the phases of ScotZEB?

Phase 3

Phase 3 (ScotZEB3) aims to maximise the number of zero emission Public Service Vehicles (PSVs) operating on regulated local service routes, in direct response to new UK Government legislation (Bus Services Act 2025) that will end the registration of new non-zero-emission vehicles on regulated routes, no earlier than 1 January 2030. Ministers have not decided a date when these powers will be exercised.

ScotZEB3 offers partial funding towards zero-emission buses and coaches running regulated local services routes and powering infrastructure to consortiums of industry stakeholders or individual operators to support industry transition.

Applications for ScotZEB3 are currently open and will close on 26 February 2026. Applications will be processed and reviewed shortly after closure with assessment panels in March 2026.

Apply for funding

Before applying:

Eligibility and terms and conditions may vary from any previous round of funding. Further details on terms and conditions will be released alongside the application form.

To apply for ScotZEB3 complete the fund application form and return with all required evidence by email to [email protected] by 23:59pm on 26 February 2025. Any incomplete or late applications will not be considered.

 

Please note:

  • All applicants will be assessed against the standard criteria and using a set scoring matrix in the guidance document.
  • Transport Scotland remains under no obligation to make any awards through the Scottish Zero Emission Bus (Phase 3) challenge fund.
  • The deadline for applicants to apply for ScotZEB3 3 of funding is 26 February 2026.
  • For general enquiries, you can contact the team at [email protected].

Last updated: 11 December 2025