Governments in every part of the UK have promised to transform the economy and deliver growth through investment in green skills and decarbonisation, with public transport at the heart of those plans. Bus and coach operators will have a significant role to play as we work with the Government and private sector partners to decarbonise our vehicles and drive modal shift. But have we fully realised the opportunities for the industry presented by the green growth agenda, and have we fully understood the financial and human challenges in achieving it?

What do we mean by green growth? 

“Green growth is in essence a means of achieving growth with fewer negative externalities” said Marcus Johns of IPPR North on a panel with Julia Meek, Business Development Director at Zenobē and Faizan Ahmad, Decarbonisation Director at First Bus. It’s the 2025 edition of the annual Confederation of Passenger Transport Conference (CPT) and bus and coach operators from across the UK are gathered to discuss the year ahead for the sector within the context of a UK Government focused on bus reform. 

Marcus’ initial assessment frames green growth as a way to achieve the UK Government’s growth mission in an environmentally, socially and economically sustainable way. But what is clear from the conversation that follows is the scale of the opportunity for the bus and coach sector if given the right support. The “seeds are ready to bloom” – across skills, supply chain, placemaking and within modal shift too. 

And if modal shift is the way to firm up the business case for bus, then electric is the means. As Julia simply explains, “You would always recommend a smooth, clean and quiet journey over a loud and polluting one.” Electric buses compound the benefits of public transportation – connecting opportunities and removing cars from the road – whilst offering cleaner air for communities and reduced environmental impact.  

Doubling down on green growth will require businesses to deliver products and services comparable to the scale of the net zero ambition. It also relies on clarity from Government on the route ahead for zero emissions. 

Green growth will require clarity from government  

But as Julia highlighted during the panel, as bus reforms take shape there appears to be a gap between the zero-emission ambition and implementation. With the current programme of bus reform representing the largest change to the sector since deregulation was introduced in 1986, how will Government and transport authorities ensure that decarbonisation does not pause and the opportunities of green growth can be realised?  

“Certainty is crucial”, highlights Julia. Operators cannot afford to switch their vehicles to electric without a clear business case. The suggestion in the Better Buses Bill of target setting post-2030 does little to provide certainty, nor to clarify how this shift might be funded or implemented. 

As detailed in our report ‘Charging Forward’, over a 15-year period, when purchased with cash up front, operators could expect the Net Present Value (NPV) of an electric fleet to be £160,000 lower when compared to diesel. Whilst the case for switching from diesel to electric may be clear, this saving is largely unrealised as many cannot afford the significant capital investment to buy these vehicles upfront.  

Leasing arrangements, bolstered by bus reforms that incentivise decarbonisation and modal shift, could deliver an NPV saving of £120,000 whilst reducing upfront capital expenditure requirements. This requires an openness to private finance in the name of “value for money” for the taxpayer and policymaking that will drive modal shift, increase revenues and prioritise zero-emissions. 

If certainty for the sector is what’s required, then First Bus are certainly a clear example of where the sector could go. “We’re not just talking about it, we’re doing it”. £250m of investment in decarbonisation to date, solar installed at 23 depots, a further five depots to be electric by the summer, and shared charging infrastructure across its 650 charging points. Faizan Ahmad gives an view of the opportunities available by seizing decarbonisation to solve challenges not just in the bus sector, but the for all heavy fleets across the UK. 

So, is green growth achievable, and what does it mean for the bus sector? 

Not all operators will be able to achieve the scale of First Bus. Whilst the Government has emphasised that it will support SMEs, it needs to consider what support it is best placed to deliver. As the panel highlighted, industry expertise and the development of new skills are crucial – with Faizan identifying charging infrastructure as a “key facet” of this newly fuelled, newly skilled future. 

Engineering support after electric depots go live is important, and many OEMs are differentiating by providing training on maintenance and after-sales support. Over time and with knowledge sharing, this will help the industry get up-to-speed, but where Julia believes that the skills gaps will truly emerge is around energy and management of energy costs in depots. 

Bridging this knowledge gap is important not just at the operational level but at a policy and regulation level too. As we move towards an era of electrified transport, energy and transport sectors needs to be joined up. This is evident in the impacts of regulation like the Targeted Charging review, which penalises bus depots for high energy usage despite their lower impact on grid reinforcement. Understanding these charges, how different infrastructure designs can mitigate them, and other strategies to manage energy and ancillary costs are all important.  

This may feel technical, and like a lot to get to grips with. But as Marcus highlighted, we have a legacy of a skilled workforce in the UK, now under-utilised and ready for renewed focus. 

So have we full realised the opportunities for the sector? 

Bus and coach are fundamentally aligned with the green growth agenda, and when paired with zero emissions vehicles the opportunities are even greater. We’re at the precipice of significant change, and even greater opportunity; but we will need experts, new skills and collaboration between business and government.