The Centrica-owned company said that domestic customers signing up to the Zero Carbon tariff will reduce their household energy carbon emissions to zero through Kyoto-compliant offset schemes that will meet the UK Department for Environment, Food and Rural Affairs’s new requirements. The tarriff’s customers will also help to fund a direct increase in investment in renewable energy generated in the UK.

In addition, Zero Carbon customers will contribute to the new British Gas green fund, which, in turn, will invest in developing new renewable technologies such as wave power and will oversee a program to help schools in the UK reduce their carbon dioxide emissions.

According to British Gas, this tariff offers the only zero carbon option on the market. The tariff carries a premium of GBP84 per year, which the company said reflects the higher cost of producing energy through lower carbon emission schemes.

Virginia Graham, chair of Global Action Plan, said: Consumers signing up to the tariff can be confident that they are getting 12% more renewable energy than they would otherwise have got. The carbon emissions from their electricity and gas will also be offset with emissions reductions from projects accredited by the United Nations.

British Gas’s second green energy tariff, Future Energy, comes at a premium of GBP20 per year. Customers signing up to this tariff will contribute to a green fund that will provide solar panels and other renewable energy technologies to UK schools. Money from the fund will also be invested in development of future renewable technologies and sources.

Gearoid Lane, managing director of British Gas New Energy, commented: Green tariffs are moving from niche to mainstream products and we’re leading the industry by offering a tariff that will do more for the environment than any other product currently available.