Businesses looking to install energy efficient boilers, heating systems or other energy saving equipment have been offered a way to raise the funds necessary.
The Carbon Trust used to offer up to £100,000 in interest free loans, but in the difficult economic climate has raised the limit to £200,000.
Because of the difficulty that companies may have in finding alternate funding, the Carbon Trust, which was set up in 2001, will also consider paying for the whole cost of new or upgrading equipment.
Hugh Jones, solutions director at the Carbon Trust, said that small and medium-sized enterprises were interested in reducing their environmental impact but that the credit crunch had made it increasingly difficult.
He added: "We know that some companies found that the £100,000 limit made it hard for them to finance the more ambitious projects they wanted to invest in, such as large lighting installations, boilers projects, or multiple equipment purchases such as variable speed drives with compressors and heat recovery equipment."
"£200,000 loans pave the way for companies to take on such projects and significantly reduce both their carbon emissions and their energy bills, which in turn will enable them to reduce operational costs and become more competitive."
The Carbon Trust was set up by the government as an independent company which can provide financial advice and support to help companies improve their efficiency as it seeks to prepare the way for the low carbon economy.
