Green Bus Fund

Rounds 1 and 2 of the Green Bus Fund provided £45m over the last two years to encourage the purchase of hundreds of low carbon emission buses throughout England. The fund has been awarded to bus operators, local authorities in England, Passenger Transport Executives (PTEs), Transport for London (TfL), and companies leasing/renting buses to these bodies to compete for funds to assist towards the additional cost of low carbon emission buses.

Thanks to the first two rounds, the fund is already helping to deliver over 540 new low carbon emission buses to towns and cities in England. The DfT announced a new £20m Round 3 of funding in December 2012 to encourage further investment.

Bids will be assessed according to published criteria available from the DfT. This will include:

  • The size of grant claimed, which will be a maximum per bus of the difference of between the cost of the low carbon bus and the cost of its standard diesel equivalent. Subject to state aid rules, the maximum grant may be significantly less.
  • The environmental benefit delivered in terms of GHG emissions and reduction in pollutants affecting air quality.
  • Where the buses will be operated. Bids should relate to buses which will be used on routes in England. The Department wants to support a geographic spread of low carbon buses across England, particularly in urban areas, and to support a range of different low carbon buses operating in different circumstances.

Bidders will need to have contacted and negotiated with bus manufacturers in advance of submitting a bid and will need to include information from bus manufacturers in their bids, including commitments to the operating performance of the vehicle.

Full details of the bidding criteria are available from the guidance link show on the right.