More than £60 million of public cash is being made available to replace almost 300 old diesel buses with new electric models.
Transport minister Jenny Gilruth announced the funding - the largest award of its kind in Scotland - was being made available through the government's Zero Emission Bus Challenge Fund (ScotZEB).
The money, which totals more than £62 million, will help bus firms replace 276 existing diesel vehicles with new battery-powered electric models and will also help with the costs of the necessary charging infrastructure.
Meanwhile, with 137 of the new buses being built in Falkirk, the cash will help support green jobs in Scotland, as well as cutting emissions from transport and helping to tackle climate change.
Ms Gilruth said: "We want more people to choose to travel by bus now and in the future, and to do so knowing that local buses are contributing to our climate change ambitions.
"Our Zero Emission Bus Challenge Fund is successfully decarbonising Scotland's bus fleet faster than ever before and making a significant contribution to our mission zero ambition for transport."
The minister added: "We're providing £62 million in a way which attracts additional private sector investment, resulting in 276 new zero emission buses to be deployed across Scotland. 137 of these buses will be built in Falkirk - supporting skilled, green manufacturing jobs and benefiting the Scottish economy."
Cash from the first phase of the ScotZEB scheme is going to smaller bus operators and rural service providers, such as Houston's Coaches in Lockerbie.
Owner William Houston said: "Here at Houston's we want to do our part to respond to the climate emergency and move to a zero emission fleet.
"As a smaller local operator, it's been difficult for us to compete with larger operators and attract in financial support to help make the switch.
"The ScotZEB programme has helped us compete and enabled Houston's to invest in new zero emission buses.
"I'm delighted that our customers will soon benefit from the modern conveniences of four new battery electric buses, which at the same time will improve air quality and help protect our environment."
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