Green for Go: Financial Incentives Fuels Manufacturing Growth in Green Revolution

Greater incentives are needed to encourage the manufacture of even more green buses — after latest figures showed strong growth in a sector battling back from the brink. 

Mike Hawes, chief executive of the Society of Motor Manufacturers & Traders (SMMT), said transport firms require further motivation to make greener choices.

And he claimed the future of fleet decarbonisation depends upon subsidies as manufacturers grapple with the upfront cost of zero electric buses (ZEBs) and depot upgrades.

“A range of transport options is essential for everyone’s mobility needs to be met, so it was great news that SMMT data published this month shows the number of new buses, coaches and minibuses joining UK roads grew substantially in 2024,” said Hawes.

“Indeed, the highest volume of annual fleet renewal in 16 years is a much needed boost for the sector, still recovering from historically low passenger levels during the pandemic when our industry – operators and manufacturers – struggled to stay afloat.

“Passengers are returning, however, and they are increasingly travelling on the very latest, greenest technology, with UK rollout of ZEBs up by a third last year.”

With 1,570 ZEBs registered across the country in 2024, the UK was Europe’s biggest market by volume for the second year running.

And Hawes added: “It’s a significant success — one that’s driven by impressive manufacturer investment and innovation, as well as compelling incentives for operators.

“The passenger ultimately benefits as, like the superb driving experience often credited to electric cars, ZEBs offer an enhanced rider experience — more modern, smoother, quieter and cleaner — which will only encourage more ridership.

“Affordable mass green mobility is the bus sector’s long-term goal and with 17 different ZEB models now available, there is ever more choice for operators.

“Given the upfront cost of ZEBs and depot upgrades, however, further fleet decarbonisation depends on continuing to provide incentives, which are proven to work.”

Business Energy Claims (BEC) — and its sister company Green Zone Surveys — is a keen advocate of green transport and is well aware of the energy efficiencies associated with modern-day ZEBs.

“At this stage in the UK’s green transport revolution, it’s vital that manufacturers can pivot to meet demand,” said Callum Thompson, CEO of BEC. “That means incentives must be available to encourage those firms.

“We’re all about saving manufacturers money as we look to expose unscrupulous energy brokers but the bigger picture is that those same firms should be encouraged to invest in the green economy.”

Return to Insights