Going further

The need for collaboration

Collaboration is essential to maximise efficiency, rationalise vehicle use, reduce costs, and accelerate the transition to a zero-emission fleet. By working together, public bodies can maximise emissions reductions, share costs, pool resources, generate demand to achieve economies of scale, and attract private investment.

It will not be possible to achieve the scale and pace of emission reductions needed without a genuine openness and willingness to collaborate, work in partnership and share access to infrastructure and resources. Collaboration will bring efficiencies, opportunities for fleet or operational rationalisation and, importantly, create more opportunities to unlock or lever in private capital.

Developing an approach to fleet procurement and operation of public sector fleets creates opportunities to lever private investment, and private capital is essential as the public sector will not be able to meet the full cost of transitioning vehicles and installing infrastructure required.

There are already a range of examples of the benefits of collaboration across the public and private sectors, including ScotZeb – where public funding is enabling private investment to decarbonise bus fleets and install high capacity charging that is accessible to public and private sector fleets – and the EV Infrastructure Fund - where public funding is enabling local authorities to collaborate to develop opportunities at a regional scale that can attract the right level of private investment in public EV charging networks. Public grant funding is expected to continue to have a focus on enabling larger scale private investment, for example through development of collaborative or consortia led approaches to investment in vehicles and infrastructure. The public sector should consider where this type of approach creates opportunities to reduce up front or operational costs associated with decarbonising the public sector fleet.

Where there are legislative, accounting or other barriers to the public sector participating in a partnership, consortia or other form of collaboration, these should be explored and where appropriate challenged and highlighted to relevant policy leads within Scottish Government.

Alternatives to battery electric vehicles

It is anticipated that the majority of vehicles in the public sector will be decarbonised through a transition to battery electric vehicles (BEVs). However, there may be some circumstances where this is will not be possible based on technology available at the time. Other types of vehicles or fuel may be used as interim measures, where they can reduce fleet emissions, supporting a progressive reduction in emissions from the public sector fleet but retaining the required level of resilience across public and emergency services.

Plug in hybrid vehicles (PHEVs) may offer a cost-effective interim solution where there are no equivalent solutions available on the market. However recent analysis has indicated that they are not great from an emission reduction perspective. Where possible these should only be considered where it can be demonstrated a hybrid vehicle is able to make a meaningful contribution to emission reductions towards a zero-emission public fleet by 2040, for example by operating wholly on battery power during standard operation. This may be an option employed to ensure resilient public services, using internal combustion as an exception where it is not possible to charge a vehicle or to respond to an emergency.

Green hydrogen offers alternatives to battery EVs. It is produced using renewable electricity via electrolysis and is considered the most sustainable hydrogen fuel for powering zero-emission fuel cell EVs. However, both hydrogen vehicles and green hydrogen remain expensive compared to battery EVs and other fuels. In the short to medium term, there is currently a limited supply and insufficient refuelling infrastructure to support a large-scale transition to fuel cell EVs. Despite these challenges, green hydrogen could offer a viable solution for utilising curtailed wind energy caused by grid constraints. It may also provide a viable fuel alternative for heavier, more specialised vehicles where electricity infrastructure cannot be installed, however progress in developing either vehicles or green hydrogen has not yet progressed as fast as was initially envisaged.

Hydrotreated Vegetable Oil (HVO) is recognised by the Renewable Transport Fuel Obligation (administered by the UK Department for Transport) as a low-carbon alternative to diesel. While HVO can serve as a valuable transitional fuel, the public sector should not treat it as a substitute for comprehensive fleet decarbonisation. If introduced, it should form part of a broader strategy that includes due diligence, lifecycle emissions analysis, and alignment with long-term net-zero objectives. There are also important considerations such as supply chain transparency which is essential to ensure sustainability and emissions integrity. 

Procurement of services

The public sector should review and consider how greenhouse gas (GHG) emissions are assessed in tenders/contracts that involve the utilisation of road transport and road-based vehicles whilst in the course of business and explore and enable ways that the public sector can ensure suppliers and supply chains make an appropriate and proportionate contribution to emission reductions from transport. 

Consider introducing additional requirements that can quantify and deliver emission reductions within procurement of public services involving transport or vehicle use. This could include but not limited to, the following:

• Setting carbon budgets specific to contract delivery as hard targets within ITT documentation (with appropriate weightings applied to the technical envelope). In addition, consider setting mandatory pass/fail questions within the technical envelope to meet pre-determined criteria complimentary to the goods/services required.
• Implementing internal carbon pricing or establish a suite of meaningful key performance indicators (KPIs) to incentivise contractors and respective supply chains to decarbonise their fleets. It is important that these changes are developed collaboratively and that supply chains are actively engaged to ensure all parties (the Contracting Authority and supply chain) fully understand the potential impacts of any proposed measures.

Procurement frameworks and contract requirements should also consider air quality impacts, including requirements for suppliers to use LEZ-compliant or zero-emission vehicles where operating in urban areas. This will help ensure consistency between fleet decarbonisation, air quality objectives, and wider transport policy.

Reducing grey fleet emissions

Whilst not directly attributed to the public sector’s own fleet, the public sector can reduce grey fleet (use of privately owned or leased vehicles for business travel) emissions by implementing a range of practical strategies that encourage low emission travel and reduce reliance on personal vehicles for work related journeys. Applying Scotland’s National Transport Strategy Sustainable Travel Hierarchy and promoting alternatives to driving, such as cycling and using public transport. In addition, where possible using technology to hold online meetings and offering remote working. 

Grey fleet usage can be reduced by establishing car clubs providing access to zero-emission alternatives to using private cars for business, including car clubs and other shared vehicles. Offering incentives for greener travel options such as active travel, public transport or considering electric vehicle salary sacrifice schemes that mean where a private vehicle is used for business, it is still zero emission. Educating and engaging staff through awareness campaigns and eco-driving training can further support long-term behavioural change and promote more sustainable travel choices.