More funding for zero emission buses announced in England and Scotland
Wed 25 March 2026
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The Government has announced that it will part-fund the cost of 484 new zero emission buses through a £73.2m package aimed at councils and combined authorities in England. Meanwhile the Scottish Government has awarded £45 million through the third Scottish Zero Emission Bus Challenge Fund (ScotZEB3) to support the purchase of over 330 zero emission vehicles in Scotland, alongside the installation of charging infrastructure.
The biggest recipient of funding (£33.42m) is the South Yorkshire Mayoral Combined Authority (SYMCA) towards the purchase of 186 battery-electric buses in Sheffield. £11 million will support Tees Valley Combined Authority’s introduction of 82 electric buses and the electrification of two depots, while Liverpool City Region will receive £7m for 36 ZEBs. Most of the funding is via expansions of existing Zero Emission Bus Regional Areas projects.
The Government says funding will be supplemented by £94 million of investment from operators, authorities and councils.
In addition to its £45m funding, the Scottish Government says it is continuing to examine options for a regulatory approach through the UK Bus Services Act 2025. This would apply from a date no earlier than 2030, to further support the phased uptake of zero emission buses on local services.
The latest awards mark the conclusion of funding from the Scottish Government to support large operators to make the transition to zero emission vehicles.
Cabinet Secretary for Transport Fiona Hyslop said: "Since 2020, we have invested over £154 million in zero emission buses and infrastructure. This additional £45 million will support the ambition and leadership of operators that seek to decarbonise their operations as quickly as possible. It also helps ensure that the bus sector can access the benefits of Scotland’s investment in secure, renewable sources of electricity.
"With every £1 of public funding leveraging over £2.50 of private investment, ScotZEB3 has demonstrated that government and industry can work together to deliver transformative climate action."
Full details of the awards can be found on the Transport Scotland website.
According to a March 2026 report by the International Council on Clean Transportation (ICCT), zero emission (ZE) buses and coaches reached a 24.8% sales share in the European Union in 2025. This marks a significant acceleration in electrification, with nearly 24,000 ZE trucks and buses in total registered in the EU 2025, driven by new CO2 standards.
Image: Courtesy Stagecoach
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