Low Emission Zone Support Fund for Businesses

Support provided by Energy Savings Trust

What does this involve?

This fund is now closed. To register interest in future funding, visit the partner website. Eligible Scottish micro businesses and sole traders can apply for up to £2,000 to take older, more polluting vehicles off the road and move towards cleaner transport options. This is for operating vehicles that are not compliant with the Low Emission Zone (LEZ) standards, in Scotland’s 4 largest cities.

Low Emission Zones (LEZs) across Glasgow, Edinburgh, Aberdeen and Dundee are being introduced in 2022. LEZs are designed to improve local air quality by discouraging older, more polluting vehicles from entering the zone. By moving older, more polluting vehicles off the road, local air quality will improve.

To be eligible, businesses must be operating LEZ non-compliant vehicles within 20 kilometres of a planned LEZ and dispose of their vehicle with a SEPA authorised treatment facility.

This fund has been made available to help applicants avoid future LEZ penalties by shifting away from non-compliant vehicles and moving to cleaner transport options. It is expected applicants will replace vehicles with sustainable travel options.

Following successful disposal of vehicles and claim of grant, eligible businesses can apply for a further £1,000 in funding to purchase a cargo or eCargo bike option to support business operations.

Am I eligible?

To be eligible for the Low Emission Zone Support Fund, you must meet all of the following criteria:

  • your business must have an operating site within 20km of a planned low emission zone
  • your business must own a vehicle that does not meet the minimum emissions standards for low emission zones:
    • Euro 3 or older petrol vehicles – this generally applies to those registered before 2006
    • Euro 5 or older diesel vehicles – this generally applies to those registered before September 2015
  • the vehicle must hold a current MOT and be taxed - if you are unsure, you can check online for your vehicle's tax and MOT status
  • the vehicle must be registered in the name of the business owner or under the business name
  • you must have owned the vehicle before 17 September 2020 and use it for business operational purposes

Your business must also be an active micro business or a sole trader. To fit this definition, you must:

  • employ no more than 9 full-time equivalent employees
  • have a turnover of £632,000 or less, or a balance sheet of up to £316,000 in the preceding and current financial year

Full eligibility criteria can be found by following the link to the Energy Saving Trust website at the bottom of this page.

What does this cost?

This service is free to access.

Who is this for?

Micro businesses and sole traders operating in and around Glasgow, Edinburgh, Aberdeen and Dundee.

How long does this take?

All applications are reviewed within 10 working days. Missing information can delay the payment of your grant.

Once a grant is offered, businesses have 3 months to dispose of their vehicle with an authorised treatment facility and submit claim paperwork. Once this has been processed, the grant payment will be released and eligible businesses will then be invited to apply for cargo bike funding through Travel Better for Businesses.

Important information

You should not take action to dispose of the vehicle until you've received a grant offer letter.

Funding is subject to availability on a first come, first served basis until 31 March 2023.

Next steps

Visit the Energy Saving Trust website to check eligibility and complete a self-referral form.

If you meet eligibility requirements, an application form will be sent to you.


Support provided by Energy Savings Trust

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