Scottish Green Bus Fund

On 30 August 2013 Transport Scotland announced funding of around £2m for a fourth Scottish Green Bus Fund. Read full details of the announcement.


The aim of the fund is to  further support the wider roll out of low carbon buses across Scotland and builds on the success of earlier rounds of the Scottish Green Bus Fund. Details are available of earlier funds.

Bids can be made to the Scottish Green Bus Fund 4 for grant to help buy new Low Carbon Emission Buses (LCEBs) – both double decker and single decker buses, including midibuses (but not minibuses).


  • The Scottish Green Bus Fund 4 will operate as a Challenge Fund with a fixed budget of around £2  million in the financial year 2013-2014
  • Grants will be offered to successful bidders for up to 80% of the price differential between a LCV and its diesel equivalent
  • No more than £1.5 m will be offered to any one bidder (though joint bids can be submitted for more than £1m)
  • Bus companies should bear in mind that the £1.5 m maximum applies collectively across all their subsidiary companies.

Who Can Apply?

Bids are invited from:

  • Bus Operators (including Community transport operators)
  • Local Authorities (LAs)
  • Regional Transport Partnerships (RTPs)
  • Companies leasing/renting LCVs to the above bodies in Scotland.



Process – Key Dates

  • Bidders will have until 15 November 2013 to put together bids with bus manufacturers.
  • The Bidding Document details how the fund will operate and should be read carefully before submitting a bid
  • Bus Operators and Companies leasing/renting LCVs should use the Bidding Proforma to make their bid
  • Local authorities and Regional Transport Partnerships should use this Bidding Proforma to make their bid
  • Guidance for Bus Manufacturers is available see “Certification of Dedicated Gas Buses as Low Carbon Vehicles
  • Successful applicants will be announced in December 2013.
  • Successful bidders will be required to place ALL orders with bus manufacturers no later than 31 January 2014. Grant will only be paid on bus manufacturers’ confirmation of orders placed by this date
  • We suggest LAs and RTPs consider initiating any tendering exercises for proposed vehicles at the same time as preparing their bid.  They will then be best placed to proceed should their bid be successful.

Register of Interest

In order to gauge the level of interest in the Scottish Green Bus Fund 4, it would be helpful if those interested in making a bid register their interest by providing the Company/Local Authority/RTP name, number of buses intending to bid for and contact details to:-

Closing Date for Bids

Completed Bidding Proforma should be submitted online to by 17.00 on Friday 15 November 2013.

EU State Aid Implications

In order to have wider powers to pay grant under the Scottish Green Bus Fund 4, the Scottish Government considers it necessary to make a formal State aid application to the European Commission.  We are doing this in parallel with running the Fund and expect to receive the outcome before announcing the results of the bidding.  All bidders should note that no grant will be paid until EU State aid approval has been granted.


Any enquiries about the scheme should be e-mailed to: or tel 0131 244 0866.