Transport Scotland has announced further funding for the second and final phase of the Scottish Zero Emission Bus Challenge Fund (ScotZEB2), reopening the opportunity for additional projects to receive support. The initiative aims to assist large bus operators in replacing diesel fleets with zero-emission alternatives, including battery-electric and hydrogen-powered vehicles.
Last July, the government awarded £41.7 million to a consortium led by Zenobē, involving eight bus operators. Although this was originally intended as the final grant, Transport Scotland confirmed that the second-placed bid in the funding competition would now be reviewed for further support. That bid comes from Rock Road, a UK-based funding platform established in 2024 focused on battery and hydrogen bus projects. The renewed funding could facilitate the deployment of up to 300 new zero-emission buses in Scotland.
Launched in May 2023, ScotZEB2 offers capital funding for battery-electric and hydrogen buses, coaches, and related infrastructure, supporting consortium bids that bring together operators, financiers, manufacturers, infrastructure providers, and local authorities. Building on Phase 1—which allocated £62 million for 276 vehicles and infrastructure—this final round aims to leverage private investment and prepare the sector for anticipated regulation banning the sale of new non-zero-emission buses from 2030. Notable bus operators such as Stagecoach have already benefited from ScotZEB support in electrifying their fleets.
The Scottish government is simultaneously assessing regulatory measures to encourage a phased transition to zero-emission buses as part of wider decarbonisation efforts targeting heavy-duty vehicles and promoting public transport use.
Cabinet Secretary for Transport Fiona Hyslop said: “This further investment of up to £40 million from the Scottish Government through ScotZEB2 is a clear signal of our commitment to a zero-emission future for Scotland’s transport network. Since 2020, we have invested over £154 million in zero-emission buses and infrastructure, and this new funding is aimed at helping more operators to make the switch.”
She added, “With every £1 of public funding leveraging over £3 of private investment, ScotZEB2 has exemplified how government and industry can work together to deliver sustainable, inclusive transport solutions. The programme is not only reducing emissions – it’s supporting jobs, connecting communities, improving air quality, and continuing to build a cleaner, greener Scotland.”