Commission Approves State Aid for Purchasing Low Carbon Buses in England
The main objective of the scheme is to reduce the CO2 emissions produced by public buses through the introduction of a 'Green Bus Fund'.
Buses capable of achieving at least a 30% reduction in CO2 emissions compared to standard buses are eligible to apply for the aid scheme. The scheme does not provide for any particular technology. However the grants will be awarded on the basis of a bidding procedure. Priority will be given to bids requiring the lowest grant per vehicle. The beneficiaries will be bus operators.
A budget of £30 million is to be made available from 2009 to 2011 under thescheme.
The Commission found the scheme compatible with EU state aid rules, and inparticular with its latest communication on environmental protection.