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Grants and loans

Zero Emission Bus Market Transition Scheme

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

What is the Zero Emission Bus Market Transition Scheme?

Funded by Transport Scotland and administered by Energy Saving Trust, this new £500,000 grant will target SME bus and coach operators; community, home-to-school, and transport-to-healthcare bus operators; and financiers and other third parties who wish to collaborate or establish a consortium with these operators. 

The funding will help these organisations understand the steps required to replace their fleet with zero emission alternatives. This support will mean they are well positioned to apply for the Scottish Zero Emission Bus Challenge Fund (ScotZEB) Phase 2 funding, which is expected to launch early in financial year 2023/24. 

Applications close on 9 December 2022 but please note this may happen earlier if the grant is fully allocated, so early applications are encouraged.

ScotZEB Phase 1

The additional funding follows the success of Phase 1 of the Scottish Zero Emission Bus Challenge Fund (ScotZEB), which closed for applications in November 2021. Phase 1 saw over £62 million in grants awarded to nine bus operators and local authorities, which supported 276 zero emission buses and associated charging infrastructure. 

You can read about some case study examples of the Scottish Zero Emission Bus Challenge Fund.

What are the aims of the scheme?

The Zero Emission Bus Market Transition Scheme aims to encourage and enable a step-change in progress towards zero emission buses across Scotland. There are three streams with different specific aims:

Stream 1 is aimed at supporting SME bus and coach operators, community and school bus providers to assess which zero emission technology is best for them and how it can be implemented.

Stream 2 is aimed at encouraging significant disruption to the market. Funding is available for developing collaborations across the operating, manufacturing, energy and finance sectors to bring scaled up, innovative bids to ScotZEB Phase 2 that will alter the market and bring in more private financing.

Stream 3 is aimed at demonstrating the potential role that the repowering of older diesel buses can play in the transition to net zero, recognising that repowering may be a more cost-effective option for SME operators, and may create additional green jobs in Scotland. 

Applicants may find the following documents, produced by the Bus Decarbonisation Taskforce, helpful:

How much funding is available?

A total of £500,000 has been made available by Transport Scotland in 2022/23, with maximum funding per applicant in each stream detailed below:

Stream 1: Applicants can apply for up to £10,000.

Stream 2:  Applicants can apply for up to £25,000.

Stream 3: Applicants can apply for up to £100,000.

Funding can cover 100% of eligible costs, up to the maximum values noted above.

What are the project requirements and who can apply?

Applicants must meet the follow obligations and criteria to be eligible for funding under the Zero Emission Bus Market Transition Scheme:

Guidance and application forms

For more detailed information on the scheme, please see our guidance document.

If you would like to request an application form, or if you have any questions, please contact

Last updated: 10 August 2022