- The Scottish Government has launched a £2 million HGV Market Readiness Fund, set to run across 2025 and 2026.
- It aims to support HGV operators in the switch to zero-emission alternatives, such as fully-electric HGVs.
- The fund will also work with HGV manufacturers, financiers, as well as charge point operators.
Scotland looks to decarbonise the HGV sector further
The new funding exists as part of the HGV Decarbonisation Pathway for Scotland, which looks towards a future where zero-emission HGVs become the norm in Scotland. The pathway underlines four challenges currently hindering adoption, namely energy infrastructure, financial models, commercial confidence, and workforce skills, with strategies set to overcome these hurdles.
Scotland is in a unique position when it comes to its haulage industry, with the majority of HGV operators in the country having no more than two vehicles registered under their operating licenses. As you’d expect, firms like this have significantly less spare capital than some of the larger firms we’ve seen adopting electric trucks in the UK. Public funding could be what is needed to get these smaller operators over the line and into zero-emission HGVs such as electric trucks.
With that in mind, £1 million of the £2 million fund will go towards supporting the country’s small and micro-business HGV fleets, to help gain an understanding of the options available to them, and where grid connections or charging infrastructure could be required. The funding will help to produce a report which can be shared with both the hauliers in question and Transport Scotland.
The second half of the £2 million fund will go to the ‘HGV Consortium Builder’, which will look to identify a business case for both zero emission HGVs and their associated charging infrastructure in Scotland. With over 36,500 HGVs currently registered on Scotland’s roads, a widespread zero emission switch could bring significant reductions to transport emissions and improvements in air quality.
Cabinet Secretary for Transport, Fiona Hyslop, commented:
“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 £2 million 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 £1 million 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, added:
“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.”
