England puts brakes on dirty buses with hybrid grant scheme

The Department for Transport (DfT) has today launched a new £30m fund designed to help bus operators and councils invest in new low carbon buses that result in a 30 per cent cut in greenhouse gas emissions compared to conventional buses.

A spokeswoman for the DfT said that zero carbon hydrogen fuel cell and electric buses would also qualify for the initiative, although the bulk of the fund was likely to be spent on diesel-electric hybrid buses. "Manufacturers will not be able to adapt a diesel bus to meet the 30 per cent savings," she said. " In reality we expect most of the new buses to be hybrids."

Councils and bus operators in England are being invited to bid for the funding, which they will be able to use to cover the premium manufacturers charge for low carbon buses compared to conventional buses.

The DfT spokeswoman said that the criteria that will be used to judge the funding applications will be released in the next few months. She added that £10m is expected to be allocated this financial year, with a further £20m invested during 2010/11.

According to DfT figures, less than one per cent of the buses in the UK currently qualify as low carbon.

Transport Secretary Andrew Adonis said that the aim of the new fund was to provide a market for manufacturers of low carbon buses that will incentivise them to invest further in green technologies.

"Over the next two years we expect this fund to support the purchase of several hundred low carbon buses and, just as importantly, help to stimulate the development of a new green technology industry and help to safeguard up to 900 jobs in bus manufacturing," he said.

The launch of the new fund is the latest in a series of green transport measures announced this week as part of the government's new legislative agenda.

Unveiling his plans for the next parliament earlier this week, Gordon Brown announced plans for new electrified rail lines, a feasibility study into high speed rail, and the development of a new National Cycling Plan.