The Scottish Government is providing over 30 million GBP in funding throughout 2022 to accelerate Scotland’s promotion of zero emission vehicle transport.

This funding will be used to finance interest free loans for electric vehicles, as well as to support zero emission community transport and car clubs throughout Scotland. When assigning the funding, the government will prioritise used electric vehicles, businesses and people in rural areas, businesses operating light commercial vehicles, and the taxi industry.

Minister for Transport Jenny Gilruth said:

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.

Scotland Zero Emission Transport
The Scottish Government is providing over £30 million this financial year to support the shift to zero emission transport

By expanding funding for electric car club vehicles and zero emission community transport, the Scottish government aims to ensure that more people can access zero emission vehicle transportation. Car clubs with electric vehicles allow drivers to access the technology without the financial commitment of owning a car.

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.

This latest funding builds upon several taxpayer investments over the past 10 years, which have already contributed to Scotland’s support for zero emission vehicle transport:

  • 165 million GBP of interest-free loans for over 6100 vehicles
  • 4.9 million GBP for over 16,000 home charge points
  • 10 million GBP for 1500 business charge points
  • 38 established car clubs, with another 16 planned

The Scottish government’s current approach is designed to support more drivers, including from households on lower incomes to drive electric vehicles rather than combustion engine ones.

Neil Leckie, Senior Programme Manager at Energy Saving Trust 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.


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