A low emission zone, where vehicles are charged if they are high polluting, is due to be introduced in the Capital in the next year, with proposals due to be unveiled in the next week.
Cabinet secretary for transport, infrastructure and connectivity, Michael Matheson, announced the £1.09m fund which will provide targeted grant funding to taxis, heavy goods vehicles and micro-businesses.
The cash will fund the retrofitting of engines and exhausts of vehicles to comply with the new regulations.
“The Retrofitting Fund will open later this month and I would encourage interested businesses and black cab taxi drivers to register on the Low Emission Zone website for further information.
“Scotland’s four biggest cities are making good progress in establishing Low Emission Zones by the end of 2020 in order to protect public health. It’s important that people start thinking now about the proposed emission standards and exploring the funding which will be made available.”
The move will see the heaviest polluters pay extra to enter parts of the city.
Glasgow introduced a low emissions zone at the end of 2018.