The Scottish Government has confirmed it will continue to provide low carbon transport loans and grants, delivering over £30m in funding this financial year to help drive the shift to fully electric vehicles.

The 2022/23 package includes support for zero emission community transport and car clubs in addition to funding interest-free loans for electric vehicles

The package includes support for zero-emission community transport and car clubs in addition to funding interest-free loans for electric vehicles.

Funding is being prioritised to focus on used electric vehicles, businesses and people living in rural areas, those operating light commercial vehicles as part of their business, in addition to the taxi sector.

At the same time, charge point funding – both domestic and business – will also evolve to focus on those who live in rural or island areas who face higher costs and people residing in urban areas without private off-street parking.

Meanwhile, business support will focus on smaller organisations – including those in rural or island locations which are dependent on tourism and the provision of hospitality.

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.”

She added: “Our funding package of over £30m for zero-emission grants and loans will be refocused 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.”

EVA Scotland welcomed the announcement from Transport Scotland.

Spokesman Norrie Hunter said: “This financial support from the Scottish government will maintain the momentum for zero emission transport, assisting those wishing to transition to electric vehicles.

“The targeted approach of this latest funding round aims to ensure a just transition as well as ensuring that more sectors will be able to easily switch to EVs including those in more remote and rural areas of Scotland. The support for those in rural areas, those who cannot charge at home, zero emission car clubs and the hospitality sector are particularly welcomed.

“While the purchase cost of new and used electric vehicles continues to be higher than their equivalent internal combustion engine models, the gap is shrinking. This financial assistance is key to ensuring all can make the change, and by including in this funding a focus on small businesses eager to provide charge points for guests, customers and employees, it can only ensure that Scotland continues to lead the way towards a zero-emission transport system.”

ChargePoint also welcomed the new incentives, which it said would “make EV driving a reality for those who may have felt it was out of reach”.

Tanya Sinclair, senior director, policy, Europe, added: “We agree with the Scottish government’s approach to target support at the most expensive part of the EV transition for drivers – the vehicle. This will further the second-hand EV market, which is already growing exponentially, according to the SMMT.”

Sinclair also said that the package would enable charging companies such as ChargePoint free to work with businesses across Scotland to deliver a range of competitive charging solutions which are commercially sustainable and not reliant on grant funding.

“This allows for the focus to be on helping key charging locations such as workplaces electrify in a cost effective manner. The building up of charging infrastructure needs to be done quickly but correctly – it’s not just about needing a large concentration of charging stations but the speed, location, ease of use and incentives need to be carefully considered, which is what we continue to pursue at ChargePoint.”

In total for the 2022/23 financial year, £28m is available for the Low Carbon Transport Loan, £1.7m is available as infrastructure grants (including rural, SME, third sector and flatted development streams) and £1.75m is available for Plugged In Communities and Community Transport.

In the last decade, Scottish Government grant funding has included over £165m of interest-free loans to support the purchase of over 6,100 vehicles, over £4.9m to support the installation of 16,000+ home charge points across Scotland, and over £10m to deliver 1,500 charge points to businesses. A separate £50m investment over the same period has established 2,200 public charge points while a further £47m has also been invested to introduce 3,450 vehicles into the public sector fleet.