Scottish government launches fund to help hauliers decarbonise fleets

The fund has two elements, with £1m available through an SME Fleet Analysis Support scheme for small hauliers to employ a consultant to help operators understand the options available to reduce CO2 emissions from their fleets.

This element applies to operators with fewer than 50 HGVs and who have their headquarters or main registered office located in Scotland.

Up to £20,000 funding per fleet is available, which is available during this financial year (2025/26) only. Hauliers can apply for this funding up to 9 December 2025.

By the end of March 2026, those small hauliers participatingin the scheme will be provided with a report on their decarbonisation options from their appointed consultant, which is also shared with Transport Scotland.

The other element of the scheme makes £1m available through an HGV Consortium Builder scheme to encourage fleets of any size to form consortia with other industry sectorsm, such as financiers and charge point operators, to identify how to generate investment into HGV decarbonisation in Scotland.

By the end of March 2026, these consortia will provide advice to Transport Scotland on the medium-term investment needed within Scotland that allow electric HGVs to be introduced successfully.

A specific aim is to understand both the public and private investment needed over the next three to five years beyond March 2026.

Cabinet Secretary for Transport Fiona Hyslop said: “We know we need to reduce transport emissions and we know that the decarbonisation of HGVs requires real innovation and a truly collaborative approach – which is why I’m pleased to announce £2m for the HGV Market Readiness Fund.

“We’re taking the experience and approach developed for bus decarbonisation and applying it to the HGV sector. But we cannot decarbonise HGVs alone, so we’re working to attract further private investment and create the conditions which will best accelerate decarbonisation at pace and scale.

“There are a large amount of SME operators in our road freight sector in Scotland. As such, we have set aside £1m of this funding to specifically support smaller operators.

“No one and no sector should be left out of the opportunities created by the transition to a net zero transport system and I look forward to seeing what this new fund and approach here in Scotland will achieve.”

Chris Ashley, net zero lead for the Road Haulage Association (RHA), said: “We are delighted that the Scottish Government has earmarked this funding to support our industry’s decarbonisation journey.

“This investment to help operators prepare for net zero is invaluable, particularly for smaller businesses with limited back-office capabilities.

“It is a welcome boost when costs and a lack of public charging sites continue to hold businesses back from investing in zero-emission vehicles and technologies.

“We look forward to continuing our work with the Scottish Government to deliver this vital support for operators.”

Lamech Solomon, Logistics UK head of decarbonisation policy, said: “We welcome the launch of Transport Scotland’s £2m HGV Market Readiness Fund which our members believe will be a critical step towards the decarbonisation of Scotland’s HGV fleet.

“Operators have been clear that the path to decarbonisation will be difficult and expensive. This fund, which will support early collaboration between operators, manufactures, financiers and infrastructure providers should help the sector to overcome the initial barriers to investment.”

Further information about the available funding can be found at https://www.transport.gov.scot/our-approach/environment/heavy-goods-vehicle-market-readiness-fund/