Scottish Zero Emission Bus challenge fund
The Scottish Zero Emission Bus Challenge Fund (ScotZEB) accelerates Scotland’s shift to cleaner, greener buses. The Fund supports the rollout of zero emission buses and the associated charging and/or refuelling infrastructure needed to run them – cutting emissions, improving air quality and supporting our just transition and climate goals.
ScotZEB also helps grow Scotland’s green economy by encouraging investment, supporting jobs, and building a strong supply chain for zero-emission transport and energy solutions in Scotland.
ScotZEB Phase 3
The third and final phase of ScotZEB subsidy scheme was announced in November 2025, making up to £45 million available to accelerate the transition to zero-emission buses in Scotland.
ScotZEB3 was designed to maximise the impact of public investment while supporting an inclusive transition to a net zero public transport system. It build on over £103 million invested through earlier phases of the programme and aligns with forthcoming legislative changes under the UK Bus Services Act 2025, which will prohibit the use of new non-zero emission buses on registered local bus services from no earlier than 1 January 2030. In line with this policy direction, ScotZEB3 focused specifically on operators of registered bus services.
ScotZEB3 opened to applications on Friday 5 December 2025 for a 12-week period and closed at midnight on Thursday 26 February 2026. Further information about the assessment criteria is available from the scheme administrator: Scottish zero emission bus challenge fund - Energy Saving Trust.
ScotZEB3 Awards
Following closure of the application window and completion of scoring by the independent assessment panel, Ministers have approved funding awards bringing the total public investment through ScotZEB3 to £45 million. Subject to finalisation of grant award agreements.
Scottish Government funding, delivered through the Energy Saving Trust who administer the scheme on our behalf, will support the delivery of approximately 334 zero-emission buses and associated charging infrastructure across Scotland.
The funded projects will:
- Increase the number of zero‑emission buses operating across urban, rural and island communities.
- Improve infrastructure and expand third‑party access to support a smooth transition to net zero across the transport network.
- Reduce greenhouse gas emissions and improve local air quality.
- Introduce new and expanded bus routes to improve connectivity, particularly for underserved rural and island communities, and support increased public transport use.
- Increase and support green jobs and strengthen supply chains.
- Enhance the passenger experience through quieter, smoother and more modern vehicles.
- Contribute to Scotland’s wider climate change and transport decarbonisation ambitions.
The following awards are offered subject to finalisation of grant award agreements and completion of due diligence checks. Subsidy values and associated figures will be confirmed upon completion of the final grant agreements:
|
Applicant |
Subsidy Awarded |
Number of Vehicles |
Number of Chargers |
Vehicle Breakdown |
|---|---|---|---|---|
|
Ember |
£13,174,147 |
100 |
43 |
Coach x100 (Yutong) |
|
Stagecoach |
£4,568,280.40 |
44 |
25 |
Coach (x7 Yutong) Single-deck (x21 Yutong) Double-deck (x16 Yutong) |
|
Rock Road |
£11,500,317.08 |
93 |
101 |
Single-deck (x69 ADL, x10 Wrightbus) Double-deck (x14 ADL) |
|
Lothian |
£9,567,260 |
60 |
88 |
Double-deck (x40 ADL/Volvo, x20 Wrightbus) |
|
First Bus |
£5,989,966 |
37 |
38 |
Repowered (x15) Double-deck (x22 Yutong) |
This webpage will be updated in due course once these agreements have been finalised.
ScotZEB Phase 2
The second phase of the Scottish Zero Emission Bus Challenge Fund (ScotZEB 2) opened to applications in May 2023, and was designed to provide capital funding to forward-thinking companies to disrupt the bus and coach market, and help make zero-emission vehicles the default choice for all operators from now on – that includes operators of public service vehicles, home-to-school buses, community buses, transport-to-health buses, tourist and private-hire coaches who could all potentially benefit.
One award of £41.7 million was made to the Zenobe Energy consortium. This project is now in the delivery phase, bringing 252 new buses and coaches, along with the supporting infrastructure, to Scotland’s roads.
ScotZEB2 is now closed to applications.
More information on ScotZEB 2 is available from the Energy Saving Trust, who administered the scheme on Transport Scotland’s behalf: Scottish zero emission bus challenge fund (phase II) - Energy Saving Trust.
Phase 1 awards
ScotZEB Phase 1 was designed to accelerate the transition to zero-emission buses by supporting early adopters across Scotland to replace older diesel vehicles, trial new technologies, and install the first wave of depot charging infrastructure. This initial phase focused on operators who were ready to move quickly, helping demonstrate the feasibility of zero-emission fleets and laying the groundwork for wider market transition in later rounds of ScotZEB.
Following assessment, ScotZEB1 has offered awards of £62 million to nine bus operators and local authorities for 276 buses and associated charging infrastructure. The awards offered under ScotZEB1 are set out in the table below:
| Bus Operator* | Award offered | Number of buses** | Final amount claimed*** | Buses purchased |
|---|---|---|---|---|
| Bluebird Buses Ltd | £3,066,547 | 13 | £3,066,547 | 13 |
| Craig of Cambeltown Ltd | £2,409,294 | 10 | £2,409,294 | 10 |
| Dumfries and Galloway Council | £633,934 | 4 | £523,739 | 4 |
| Ember Core Ltd | £5,562,126 | 26 | £5,562,126 | 26 |
| Fife Scottish Omnibuses | £7,329,923 | 32 | £6,809,264 | 32 |
| First Aberdeen Ltd & First Glasgow No1 Ltd | £18,599,858 | 74 | £18,597,293 | 74 |
| Highland Country Buses Ltd | £5,834,978 | 25 | £5,708,424 | 25 |
| Houston Coaches | £368,413 | 4 | £360,246 | 4 |
| McGills Bus Service Ltd | £9,086,933 | 41 | £8,664,557 | 41 |
| Shuttle Buses Ltd | £485,955 | 5 | £523,740 | 4 |
| Stirling Council | £595,404 | 3 | £0 | 0 |
| Western Buses Ltd | £8,029,890 | 39 | £8,029,890 | 39 |
* This table shows the operators who have been offered awards. There are more operators than there were bidders, as all the bids from Stagecoach owned operators were treated as a single bid.
** A variety of bus sizes, from minibuses to double decks, are being supported. All awards also include support towards the charging infrastructure, in some cases the charging infrastructure will support a greater number of vehicles than the number of buses shown in the table.
*** The difference from the estimated costs to the final costs drawn down could be as a result of various factors, such as changes in cost, suppliers or withdrawal from the scheme.
Subsidy Control
The favourable terms of the grant may constitute a public subsidy in terms of the law, regulations, rules and guidance applying in the UK and/or the UK's international obligations in relation to public subsidies ("the Public Subsidies Rules"). The grant is being provided in accordance with the UK subsidy control regime, as set out in, without limitation, the Subsidy Control Act 2022 and any other applicable law, statutory guidance, code of practice, judgment of a relevant court of law and international commitments on subsidy control arising from, amongst others, World Trade Organisation Membership, the UK-EU Trade and Cooperation Agreement, and international treaties and agreements to which the United Kingdom is a party, as amended or modified from time to time.
Your organisation must be eligible to receive the grant in accordance with the Value Thresholds set out below, and we may be required to withhold payment of, or reclaim all or any part of the grant from you, to the extent necessary to ensure that the grant, either on its own or when taken together with any other financial assistance given or to be given to you by us or any third party, complies with the Public Subsidies Rules.