Scottish Government fund supports just-transition to net zero transport

The Scottish Government is providing over £30 million this financial year to support the shift to zero emission transport, targeted specifically at people and households on lower incomes.

The initiative includes support for zero emission community transport and car clubs in addition to funding interest free loans for electric vehicles.

To support a just transition to net zero, the Scottish Government says funding is now being prioritised to focus on used electric vehicles, businesses and people living in rural areas, those operating light commercial vehicles as part of their business, in addition to the taxi sector.

Support for domestic and business charge point funding is also evolving to help those that need it most – focussing on those who live in rural or island areas who face higher costs and people residing in urban areas without private off-street parking.

Business support will also focus on smaller organisations – again including rural or island locations dependent on tourism and hospitality.

Zero emission car clubs offer communities flexible and affordable access to the latest electric vehicles without the financial commitment of car ownership. By continuing funding for the Plugged In Communities programme, and expanding funding for zero emission community transport, more people will be able to access the benefits of zero emission transportation, while at the same time supporting the Scottish Government’s world leading car reduction and climate commitments.

Minister for Transport Jenny Gilruth said “Whether it’s electric miles or petrol miles, we know we need to reduce car kilometres by 20% across the board to meet our climate targets. Coupled with continued support for zero emission car clubs, I’m pleased we’re expanding support for community transport schemes. This will help eliminate the need for individual car ownership and ensure it’s not just the wealthiest in society who can benefit from modern EVs.

“Over the past decade, sales of electric vehicles have grown in Scotland in line with our investment and incentivisation for early adopters. With zero emission vehicles becoming more common than at any other point, our support needs to evolve in order to help those that need it most. In doing so, we’re aligning our funding streams to support a just transition to net zero, whilst delivering on our commitment to reduce overall car kilometres travelled by 20% by 2030.

“Our funding package of over £30 million for zero emission grants and loans will be refocussed to support the many people and businesses, particularly in rural areas, who still require access to vehicles. By providing interest free loans for used electric cars and for new light commercial vehicles and taxis, we continue to support our ambition to phase out the need for new petrol and diesel cars and vans by 2030.”

Neil Leckie, Senior Programme Manager at Energy Saving Trust which is administering the scheme on behalf of Transport Scotland said, “The Low Carbon Transport Loans have been instrumental in providing much needed support for drivers in Scotland to lower both their carbon impact and fuel costs. We are motivated by the progress made over the past ten years, having worked closely with Transport Scotland to deliver more than £165 million in interest free loans to support the purchase of over 6,100 electric vehicles. In the year ahead, we look forward to continuing to create lasting change, including making used electric vehicles accessible to a wider audience by reducing upfront costs – supporting a just transition to net zero.”