£15 million for green buses to reduce CO2

Up to 50,000 tonnes of CO2 will be saved thanks to £15m of Government funding, Transport Minister Norman Baker announced today.

The winners of the second round of the Green Bus Fund - which aims to encourage and help bus operators and local authorities to buy new hybrid and electric buses - will now be able to purchase around 170 vehicles which will operate in most of our main cities and some rural areas by March 2012.

The funding will help towards the additional up front cost of buying low carbon buses and provides the capital investment required to bring down costs for operators.

Local Transport Minister Norman Baker said: “Low carbon buses use at least 30 per cent less fuel and emit nearly a third less carbon than a conventional bus, yet they currently make up just 0.2 per cent of buses on the road.

“This sector therefore has tremendous potential to reduce the impact of road transport on climate change.

“The Green Bus Fund is vital to unlocking this potential and will also stimulate a growing market."

The first round of the competition saw 24 bidders share £30 million, which is helping to support the purchase of around 350 new low carbon buses. Buses supported by the scheme are now in operation in Oxford, Manchester and Durham.