Scottish Government adds £1m to help HGV SMEs plan zero-emission future

Scottish Government adds £1m to help HGV SMEs plan zero-emission future

The Scottish Government has announced a further £1 million investment in its SME Fleet Analysis Support Fund, extending practical support for small and medium-sized haulage operators as they prepare for the transition to zero-emission heavy goods vehicles (HGVs). The additional funding follows strong demand from operators during the scheme’s first phase and forms part of the wider Heavy Goods Vehicle Market Readiness Fund, designed to accelerate Scotland’s journey towards cleaner freight transport.

The funding aims to remove one of the biggest barriers facing smaller hauliers: understanding how and when to decarbonise their fleets without jeopardising business viability. Rather than subsidising vehicle purchases directly, the scheme provides expert analysis to help operators make informed investment decisions based on their own operational requirements.

Supporting informed fleet decarbonisation

Under the latest phase of the scheme, eligible Scottish haulage SMEs can access funding of up to £15,000 to commission an independent fleet decarbonisation assessment. The resulting report examines current operations, vehicle usage, routes, energy requirements, charging or refuelling infrastructure, grid connections and suitable zero-emission technologies.

The assessments are intended to give operators realistic, evidence-based transition plans covering the short, medium and long term, while also exploring emerging commercial models such as truck-as-a-service and energy-as-a-service. The objective is to ensure businesses invest in the right technology at the right time rather than making costly assumptions about future fleet requirements.)

The scheme is open to Scottish HGV operators with up to 100 vehicles and applications will remain open until January 2027.

Strong demand drives additional investment

The Scottish Government said the decision to allocate another £1 million follows the success of the programme’s initial phase during 2025/26.

Transport Scotland reports that the first round supported detailed analysis of more than 750 HGVs and thousands of freight routes, providing valuable insight into the practical challenges operators face when transitioning away from diesel. The information gathered has also helped government better understand infrastructure requirements, technology readiness and investment barriers across the sector.)

Officials believe this evidence-led approach will strengthen future policy decisions while helping create investment-ready zero-emission freight projects across Scotland.

Skills investment complements fleet support

Alongside the additional fleet analysis funding, the Scottish Government has announced a further £900,000 for the Zero Emission Heavy Duty Vehicle Skills Challenge Fund.

The programme will support projects that develop new approaches to workforce training, improve access to specialist skills and raise awareness of careers linked to the decarbonisation of heavy-duty vehicles. Ministers argue that developing technical expertise across maintenance, infrastructure and fleet management is essential if Scotland is to achieve widespread adoption of zero-emission HGVs.

Minister highlights industry importance

Scottish Government adds £1m to help HGV SMEs plan zero-emission future

Cabinet Secretary for Economy, Tourism and Transport Stephen Flynn; official portrait.

Announcing the funding, Cabinet Secretary for Economy, Tourism and Transport Stephen Flynn emphasised the importance of Scotland’s road haulage industry and the need to support businesses through the transition.

He said: “Scotland’s haulage sector is vital to our economy, keeping goods moving and supporting businesses in every community.

“We have seen strong interest from operators who want practical support to plan their transition, and I’m pleased to commit £1 million to build on that demand as we move into the next phase of the SME Fleet Analysis Support fund.

“Reducing emissions from HGVs is essential to delivering our Climate Change Plan, but that cannot be done without the required skills which is why we are investing a further £900,000 in the next phase of the Skills Challenge Fund.

“This funding will help the industry take informed, realistic steps towards zero-emission fleets, cutting emissions while strengthening productivity and resilience across the sector.”

Building confidence for zero-emission freight

Unlike grant schemes that focus solely on purchasing new vehicles, Scotland’s SME Fleet Analysis Support Fund seeks to reduce uncertainty surrounding fleet electrification and other zero-emission technologies.

Many smaller operators continue to face questions over vehicle range, charging infrastructure, depot power capacity, financing and total cost of ownership. By funding independent analysis before major capital investment, the Government hopes businesses will be better equipped to identify practical decarbonisation pathways that suit their operations rather than adopting a one-size-fits-all approach.

The programme also complements wider Scottish efforts to develop a market for zero-emission HGVs by encouraging collaboration between fleet operators, manufacturers, infrastructure providers and technology specialists.

As the freight sector prepares for increasingly ambitious climate targets, the latest investment signals that the Scottish Government sees practical planning and skills development as essential foundations for achieving a commercially viable transition to zero-emission road transport.

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