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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, including the Scottish Zero Emission Bus Challenge Fund (ScotZEB) Phase 2 funding in 2023/24. 

See here for the Houston’s Coaches report.

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.

ScotZEB Phase 2

ScotZEB Phase 2 looked for applicants who believe they can change the zero-emission bus market in Scotland. You can find more information on the ScotZEB2 webpage.

What were the aims of the scheme?

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

Stream 1 was 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 was 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 was 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 were encouraged to read the following documents, produced by the Bus Decarbonisation Taskforce:

How much funding was available?

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

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

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

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

Funding awarded

See below to view the funding awarded to each stream.

The deadline for applicants to apply for the ScotZEB Market Transition Scheme has now passed.

For general enquiries, you can contact the project team via email at

Last updated: 22 November 2023