The supermarket giant said its delivery service will now allow users to choose whether they want to receive their groceries "naked", on stackable green plastic trays, or continue to use plastic bags.
The retailer said its "naked delivery" service aims to reduce the number of plastic bags, which it said wasted energy, by 1bn over the next 12 months.
Naked delivery, which has already been trialled in the UK, is an extension of a scheme that has been used in Ireland for the last two years, and will reward consumers who decide to go bag-free by giving them additional Tesco Clubcard points.
The retailer has said it wants to cut the 4bn plastic bags it dishes out annually by a quarter by 2008. It already awards its 13m Clubcard holders one point for every bag they bring back to stores.
Each year, an estimated 17bn bags are picked up by consumers from retail stores in the UK, and thrown away.
Tesco has been reported to recycle 150,000 tonnes of plastic bags and cardboard boxes every year. A series of other environmentally friendly initiatives are due to be unveiled by Tesco in the near future.
The initiative follows a recent trend among UK supermarkets to improve their environmental credentials. In September last year, Sainsbury's said it would sell more than 500 of its own-branded products in compostable packs, and Asda already runs a loyalty card scheme for customers who re-use plastic bags.
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