Skills Challenge Fund for Heavy Duty Vehicle Decarbonisation 2026/27

Decarbonising heavy-duty vehicles (HDVs) involves transitioning from diesel powered trucks, buses and coaches to zero emission alternatives, including battery electric and hydrogen vehicles. Developing the skills to build, operate, repair and maintain zero emission HDVs (ZE HDVs) and their charging infrastructure is key to enabling Scotland’s HDV sector to take advantage of the technological, economic and environmental opportunities afforded by 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,improving diversity and supporting progression.

As part of the Scottish Government's commitment to supporting a just transition to net zero transport, Transport Scotland set up the ZE HDV Skills Challenge Fund as a one year fund in 2025/26. The fund enabled participants to test, develop and collaborate on approaches that supported workforce readiness for zero-emission HDVs.

Building on the learning from the projects delivered in 25/26, we are asking for application for projects to be completed in the 2026-27 financial year. Projects that focus on raising awareness, developing skills, and improving access to training and employment opportunities across the sector are encouraged. Projects should also generate learning and set out how that learning will be shared.

In the 2025-26 iteration of the fund, eight projects were successfully delivered by a range of organisations such as local authorities, colleges, regional transport partnerships, third sector, research partners and private companies.

The funded projects generated outputs across awareness raising, workforce training, research and guidance. More than 2,000 individuals were engaged through project activity, including students, local communities and industry stakeholders. The Fund directly supported technical training for 104 individuals, including IMI-accredited ZE HDV training for technicians, apprentices and students, and train-the-trainer provision for college lecturers across Scotland. Research-led projects also generated insights into barriers affecting diversity, inclusion, recruitment and retention in the HDV workforce.

These projects provided valuable learning for future policy and funding design. They highlighted the importance of clearer career pathways, stronger business awareness, accessible and place-based training provision, and practical approaches to supporting underrepresented groups. These findings have informed the 2026-27 fund objectives and the continued focus on shared learning across the sector.

Transport Scotland is inviting applications for the 2026-27 round of ZE HDV Skills Challenge Fund. The fund will support organisations to deliver practical projects that build workforce readiness for the transition to ZE HDVs, drawing on the learning and outcomes from previously funded projects.

For 2026-27, the total available funding for all projects is £900,000. The fund is open to private, public and third sector organisations. Awards for individual projects are not expected to exceed £100,000, and all funded activity must be complete by 31 March 2027.

Projects must address at least one of the following objectives:

• Increasing awareness of the ZE HDV sector, including careers, roles and economic opportunities: addressing the need for clearer, more accessible information on the opportunities, skills needs, roles and career pathways linked to the transition to ZE HDVs.

• Supporting people and organisations to develop skills for the ZE HDV transition: building knowledge, confidence, capability and practical skills among individuals, employers, training providers, regions and regional partners.

• Improving access to opportunities within the ZE HDV sector by reducing barriers to participation in training and employment: addressing barriers that may prevent people, employers or communities from accessing training, employment and progression opportunities, including through partnership working, inclusive approaches and new models of workforce development.

Projects may contribute to more than one objective where appropriate.

Applications will be assessed on the strength and quality of their contribution to the selected objective(s), rather than the number of objectives chosen.

Applications will be assessed against three key areas: Impact, Deliverability, and Project Approach. Applicants should ensure their proposals clearly demonstrate how their prjects address the selected fund objective(s), can be delivered successfully, and contribute to the wider ambitions of the fund.

Impact

This assessment area considers the extent to which the project is expected to deliver meaningful and measurable outcomes against one or more fund objectives.

Assessors will consider:

• The relevance of the proposed activities to the selected fund objective(s).
• The significance and of the anticipated outcomes.
• The extent to which the anticipated impact is clearly evidenced and measurable.
• The extent to which meaningful collaboration with industry partners supports project delivery and outcomes.

Projects that demonstrate a strong understanding of the challenge being addressed, provide clear evidence of need, and articulate measurable outcomes are likely to score more favourably.

Deliverability

This assessment area considers the feasibility of the proposed project and the applicant's ability to successfully deliver the planned activities.

Assessors will consider:

• Organisational capability, experience and staffing arrangements.
• Whether the proposed budget and funding arrangements are realistic and sufficient.
• The credibility of the proposed timeline and delivery milestones.
• The identification and management of project risks.

Projects that provide assessors with confidence in their ability to deliver the proposed activities, within proposed budget and timeframe, are likely to score more favourably.

Project Approach

This assessment area considers how the project will be delivered and the extent to which the proposed approach aligns with the wider ambitions of the fund.

Assessors will consider:

• The extent to which the project adopts a proactive approach to widening participation and engaging individuals or groups who may not typically participate through standard recruitment, training or engagement channels.
• The extent to which the project demonstrates a new, improved or under-utilised approach to addressing workforce challenges and provides opportunities to generate and share learning with the wider sector.

Projects that demonstrate meaningful collaboration, inclusive delivery approaches, and a commitment to sharing learning and good practice are likely to score more favourably.

How to apply

Applicants must complete the application form and financial information spreadsheet attached and the other documents listed below as relevant. Applications must be submitted using the templates provided by Transport Scotland and in accordance with the application guidance. The deadline for applications is 12pm on 18 August 2026. Applications received after this deadline may not be considered.

Required documents

Applicants must submit the following documents:

1. Completed application form
2. Completed financial information spreadsheet
3. Project plan
4. Risk register
5. Project governance structure or organisation chart
6. Partnership letters, where applicable
7. Match funding evidence, where applicable

Incomplete applications may not be assessed.

Completed applications, including all required supporting documentation, should be emailed to:

• jaroslav.sabukevic@transport.gov.scot
• sean.duff@transport.gov.scot
• charlotte.taylor@transport.gov.scot

The email subject line must be:

Assessment and funding decisions

Transport Scotland aims to notify applicants of funding decisions and issue grant offer letters to successful applicants in September 2026.

Applicants should not incur project costs until they have received and accepted a formal grant offer letter, unless otherwise agreed in writing by Transport Scotland.

Pre-application discussions and enquiries

Prospective applicants are encouraged to contact the fund team before applying to discuss project ideas, eligibility and application requirements.

For questions about the fund or the application process, contact:

• jaroslav.sabukevic@transport.gov.scot
• sean.duff@transport.gov.scot
• charlotte.taylor@transport.gov.scot

Fund Timeline