About £2 million will be added to the Scottish Green Bus Fund, which helps bus companies buy more environmentally friendly vehicles. It comes on top of approximately £8 million awarded since the fund was set up in 2010.
The scheme helps with the purchase of buses which produce fewer emissions, with most of the buses bought as a result being hybrid vehicles which combine diesel and electric engines. The latest cash should help put up to 25 environmentally friendly buses on the roads.
Transport minister Keith Brown said: "The Scottish Government is committed to public transport and to our ambitious climate change target of reducing carbon emissions by 42% by 2020.
"The Scottish Green Bus Fund is helping our bus industry invest in the latest emission reducing technology and is another clear indication of our commitment to the bus industry.
"Low carbon transport benefits us all through an improved environment and a strong public transport network plays a part in this."