The scheme will give all 16- to 18-year-olds a third off single bus fares and rail travel within Scotland.
It will give 16- to 18-year-olds living in the Scottish islands two return ferry journeys to the mainland each year. The concessions will also be extended to full-time volunteers up to the age of 25.
The scheme, expected to cost between 27m and 30m each year, will be administered by Transport Scotland.
Young people will be issued with discount cards while the technology is developed for a national entitlement card.
The Scottish Youth Parliament's transport convenor Graeme Abel, 18, said: "Concessionary fares have been at the top of the youth parliament's agenda for a number of years."
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