Now in its sixth year of operation, the fund will receive £2 million for 2025-26 to encourage sustainable transportation for lower-income households, sole traders and micro businesses within 20km of Scotland’s low-emission zones.
The Low Emission Zone (LEZ) Support Fund, operated through the Energy Saving Trust, offers cash incentives alongside Travel Better vouchers to help people and businesses most in need of financial support to adapt to LEZs, as part of efforts to remove the most polluting vehicles from Scottish roads to improve air quality to protect public health.
The Low Emission Zone Support Fund also provides a grant of £2,000 to incentivise households and smaller businesses to dispose of their high polluting vehicles, as well as a further £1,000 in Travel Better vouchers to assist the purchase of a bike or e-bike, or public transportation vouchers.
Fiona Hyslop, the cabinet secretary for the Scottish government has stated her delight at extending the LEZ Support Fund for 2025-2026, “I’m pleased to open the Low Emission Zone Support Fund for its sixth round of support. Since 2019, the Scottish Government has now provided over £15m through the Low Emission Zone Support Fund. We’ve seen over 4,000 of the most polluting vehicles permanently removed from our roads – and over 560 taxis retrofitted to become LEZ compliant since funding began. It’s also welcome news that the LEZ Support Fund continues to support active and sustainable travel – with over 2,800 bikes, e-bikes or cargo bikes purchased thanks to our support. Working with Energy Saving Trust, we’ll continue to ensure that financial help is there for people and businesses who need it most.”
Electric bicycle incentive programs have expanded significantly recently in the US, with Washington State being one of the latest to introduce a program aimed at making e-bikes more affordable for lower-income commuters. This initiative is distinct in that it is funded through the state’s emissions taxes under the Climate Commitment Act, which was approved with strong voter support.
The program allocates a $5 million budget for electric bicycle rebates, with amounts ranging from $300 for individuals earning more than 80% of the area median income to $1,200 for lower-income residents. Applications will be processed through an online portal, currently in development, and rebates will be applied at the point of sale, eliminating the need for upfront payment followed by reimbursement.
Unlike some other state-level e-bike incentives, such as California’s program, Washington’s initiative will not operate on a first-come, first-served basis. Instead, recipients will be selected through a lottery system. Additional program details are still being finalised ahead of implementation.
E-bike incentive programs have gained traction nationwide as policymakers acknowledge the role of electric bicycles in improving transportation access. These programs often prioritise lower-income individuals who may face financial barriers to purchasing an e-bike, despite the potential for long-term cost savings.
For many, car ownership presents a significant financial challenge due to expenses such as fuel, insurance, and maintenance. E-bikes offer a more affordable transportation option, enabling individuals to commute, complete errands, and reach essential services without the financial burden associated with owning a vehicle.
Beyond affordability, these initiatives also address transportation equity and environmental concerns. Many lower-income communities have limited public transit options, creating challenges for residents without personal vehicles. E-bikes can help bridge this gap by offering a reliable transportation alternative that complements existing bus and rail networks. Additionally, shifting trips from cars to e-bikes can reduce traffic congestion and lower carbon emissions, contributing to improved air quality and more sustainable urban environments.
Study finds that rebate programmes are worth the investment due to significant environmental impact.
Electric bicycle rebates have surged in popularity across North America as urban planners aim to steer individuals away from cars towards healthier, environmentally friendly alternatives. However, there is limited understanding of the full impact of these incentives.
Insights from the Research on Active Transportation (REACT) Lab at the University of British Columbia (UBC) shed light on questions including whether these new cycling habits are sustainable, who benefits the most from incentives, and whether they are worth the cost. The study surveyed participants in an e-bike incentive program in Saanich, B.C., researchers discovered that the majority of new e-bike users sustained their biking habits as a substitute for car travel even a year post-purchase. Particularly, households with lower incomes exhibited the most significant reductions in car trips and carbon emissions, indicating that incentives effectively contribute to emission reduction.
Reduced car travel
The Saanich program, available from 2021 to 2022, offered varying rebates to offset e-bike costs. The rebate varied depending on household income, with the highest rebate reaching $1,600 for low-income households, and the lowest rebate amounting to $350. The results showcased a substantial uptake in e-bike adoption, with 93% of users being new to e-bikes and 60% entirely new to cycling.
A year after the purchase, users remained content with their e-bikes, integrating them into their routines for 3-4 days each week. On average, they reduced weekly car travel by 48 kilometers, marking a 30-40% reduction.
Principal investigator Dr. Alex Bigazzi, an associate professor of civil engineering at UBC leading REACT, emphasized “the enduring influence of incentives, especially among lower-income groups”The incentive not only encouraged people to switch to e-bikes, it also resulted in remarkable changes in travel behaviour that persisted long after the purchase,“.
Notably, low income groups were most affected by incentives. 8 out of 10 would not have purchased an e-bike without the $1,600 incentive, compared to just 2 out of 10 of the $350 incentive group.
Lower carbon emissions
Reduced car usage translated into a notable decrease in travel-related greenhouse gas emissions, with users cutting down emissions by 16 kilograms of CO2 per week on average, one year after buying their e-bikes. Particularly, those benefiting from larger incentives displayed the most substantial reductions in car use and carbon emissions.
“The larger incentives aimed at lower-income families did a great job getting new riders in the saddle and gave them a lower-cost alternative to using their cars,” Dr. Bigazzi said.
Greater cost-effectiveness compared to EV rebates
Contrary to popular criticism regarding their cost-effectiveness relative to climate benefits, the Saanich program proved competitive with other transportation subsidies in Canada, costing approximately $190 to $720 per tonne of greenhouse gas emissions reduced. Dr. Bigazzi emphasized the superiority of e-bike incentives over electric vehicle rebates in emission reduction, underscoring additional benefits such as increased physical activity and reduced travel costs.
The REACT Lab, in collaboration with the Province of B.C. and other researchers, is expanding its study to encompass the provincewide e-bike incentive program. This broader investigation will encompass factors such as climate variability, terrain, and cycling infrastructure, providing a more comprehensive understanding of their impacts.