Skills Challenge Fund for Heavy Duty Vehicle Decarbonisation

Decarbonising heavy-duty vehicles (HDVs) involves transitioning from diesel powered trucks, buses and coaches to zero emission alternatives, like battery electric. Developing the skills to build, operate, repair and maintain zero emission HDV's and their charging infrastructure is key to the HDV sector in Scotland taking advantage of the technological and financial opportunities afforded by the transition.

The Scottish Government’s Draft Transport Just Transition Plan, published February 2025, reassures that we don’t anticipate major sector wide job losses resulting from the transition to net zero transport, although the job mix will change. A key challenge will be to ensure that workers can access the skills they need to adapt to and support the transition.

This period of change also offers an opportunity to address long-standing workforce challenges as we meet the skills needs for the sector, including making the sector more attractive to new entrants, increasing retention and improving diversity.  

In September 2024 and February 2025, Transport Scotland held a two-part workshop to provide stakeholders with a space to contribute to planning for a just transition in the HDV sector. Discussion in these workshops covered the topics of net zero skills gaps and the issue of poor gender balance in the sector. Attendees discussed the particular challenges facing the sector and the potential actions which could be taken to address them.

Transport Scotland has committed to taking forward three of the actions identified by stakeholders at the workshops:

• produce a Skills Routemap forecasting the training requirements up to 2045 (what skills will be needed and when), to help business and the skills sector plan ahead
• build college capacity and capability in skills for zero emission HDV's by training college lecturers and providing essential training equipment to support delivery to industry
• convene a skills forum for industry and the skills sector to communicate

The ZE HDV Skills Challenge Fund is a 1 year fund to support applicants to develop projects under the following objectives (projects need only meet one objective):

1. Sharing knowledge on training and career opportunities in the HDV sector: Address the lack of accessible, joined-up information for individuals and employers on the skills, training routes and career opportunities available in the HDV sector.
2. Supporting greater diversity in the HDV sector workforce: Address challenges faced by the sector in recruiting and retaining a diverse workforce, with underrepresentation across gender, ethnicity and other protected characteristics.
3. Generating private sector investment in skills development: Address a need for stronger private sector involvement in building college resources and training programmes and/or stimulating the uptake of training in ZE HDV repair and maintenance, with a focus on small-medium enterprises.  

The fund is open to private, public and third sector organisations. The total available funding for all projects is £400,000. Awards for individual projects are not expected to exceed £100,000. All funded activity must be complete by 31 March 2026.

To apply, download the application pack and follow the instructions. The deadline for return of applications is 12pm 9 July 2025.

Applications will be assessed according to the following evaluation criteria: 

1. Extent to which the project meets one of the 3 fund themes noted above
2. Evidence that the project is deliverable by 31 March 2026 (all invoices under the grant would need to be submitted by 31 March 2026) 
3. Evidence that the project represents value for money (including sufficient financial detail) 
4. Evidence of a clear plan for sharing knowledge gained during the project. The plan should enable replication of successful approaches, foster collaboration and promote continuous improvement across the transport sector and other key transition sectors (can be delivered after the end of the project)