The City of Toronto has launched two funds that will make it easier for schools, churches, hospitals and other not-for-profit sectors to reduce their carbon footprint.

The $42 million Toronto Energy Conservation Fund and the $20 million Toronto Green Energy Fund, created as part of the city’s climate action plan, make available zero-interest loans for projects that aim to make buildings more energy efficient or bigger users of green energy. Up to $1 million will be available for individual projects, on the condition that the funding represents no more than 49 per cent of total project costs. Both new and retrofit building projects, including those involving municipal buildings, are eligible.

It’s a great idea, particularly during the current credit crunch, and we need to see more of the same. In fact, the city might want to check out what’s going on in Berkeley, Calif., where residents can install solar panels and pay for them over 20 years through a line item on their property tax bill. A company called Renewable Funding is administering the program, which could apply to a range of renewable energy and efficiency measures.

I want to know what readers of Clean Break think about the credit crisis and its impact — existing or potential — on the development and deployment of renewable energy and clean technologies.

One could argue it might help, because big-budget nuclear and clean coal projects will have more difficulty raising the money — i.e. debt financing — to push these megaprojects forward. In such a situation, renewables, conservation and combined heat and power projects could be viewed as the least risky and therefore most worth pursuing. On the other hand, the credit crunch could hit big wind and solar projects with equal impact, and force governments to make a greater commitment to backstopping nuclear and other conventional projects with taxpayers’ dollars.

And what do venture capitalists think about all this? Does the crunch affect how they allocation money, or their ability to raise it? Does it make life more difficult for cleantech startups in need of financing?

If you have any insights or opinions to share, I welcome it…