Is a green tariff just greenwashing?

Not necessarily, but quality varies. A well-structured green tariff backed by REGOs from identifiable UK renewable generators is a legitimate and recognised mechanism. The key is transparency: check the supplier’s fuel mix disclosure and REGO sourcing. For stronger claims, consider a PPA with a new-build renewable project.

How much more does a green tariff cost?

Premium varies but is typically 1–5% above standard tariffs in the UK market. Some suppliers offer green tariffs at competitive rates as renewables become cost-competitive with fossil generation. The additional cost is often small relative to the reputational and reporting benefits.

Green Tariff

A green tariff is an electricity supply contract where the supplier matches the customer’s consumption with renewable energy certificates such as REGOs.

What is Green Tariff?

A green tariff is the simplest way for an organisation to procure renewable electricity. The electricity supplier purchases Renewable Energy Guarantees of Origin (REGOs) equivalent to the customer’s consumption and retires them, allowing the customer to claim renewable electricity under the GHG Protocol’s market-based method.

Green tariffs vary in quality. The best green tariffs are backed by REGOs from named, identifiable renewable generators, with transparent fuel mix disclosures. Lower-quality tariffs may use low-cost unbundled REGOs that do not drive new renewable capacity, leading to questions about additionality.

For most organisations, a green tariff is a quick and effective first step to reducing Scope 2 emissions. It requires no infrastructure investment, can be implemented at contract renewal, and immediately reduces the market-based Scope 2 figure. However, organisations with ambitious climate commitments may eventually want to move to PPAs for stronger additionality claims.

Practical Examples

A retailer switches all 200 stores to a green tariff backed by UK wind REGOs at a 5% premium, reducing its market-based Scope 2 emissions by 85%.

A company reviews its green tariff and discovers the REGOs are from continental European hydro rather than UK wind or solar, prompting a switch to a UK-sourced tariff.

A sustainability officer benchmarks green tariff offerings from five suppliers based on REGO source, price premium, and contract flexibility.

How Climatise Helps

Climatise correctly applies zero or reduced emission factors for electricity covered by green tariffs under the market-based method, while maintaining the location-based figure for complete transparency.

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