The UK and California have agreed to deepen their long-standing cooperation on clean energy, signing a new pact aimed at accelerating investment, supporting jobs and scaling up climate
solutions on both sides of the Atlantic.
The agreement was signed in London by UK Energy Secretary Ed Miliband and California Governor Gavin Newsom, marking the latest chapter in decades of collaboration between the United Kingdom and the US state on climate, clean energy and environmental policy.
Energy Secretary, Ed Miliband, said: “This government’s clean energy mission is about taking back control of our energy to cut bills, create jobs, and tackle the climate crisis. Strong international partnerships like today’s announcement with the State of California strengthens opportunities for UK businesses and secures investment for our country”.
Governor Gavin Newsom said: “California is the best place in America to invest in a clean economy because we set clear goals and we deliver. Today, we deepened our partnership with the United Kingdom on climate action and welcomed nearly a billion dollars in clean tech investment from Octopus Energy. California will continue showing the world how we can turn innovation and ambition into climate action”.
Framed as a Memorandum of Understanding (MoU), the deal creates a refreshed partnership designed to drive innovation, connect businesses and researchers, and speed the deployment of clean energy technologies. Both governments say the agreement will help attract transatlantic investment, strengthen industrial ties and support skilled jobs as the global race for clean power intensifies.
A central aim of the pact is to link the UK’s fast-growing clean energy sector with the Californian market, opening up new export opportunities for British firms. Companies such as Octopus Energy are already expanding on the West Coast, and officials expect more UK businesses to follow as cooperation deepens.
Beyond investment, the agreement commits both sides to closer collaboration on clean energy, climate action and environmental protection. By accelerating the rollout of technologies that reduce reliance on volatile fossil fuel markets, the partnership is intended to help cut household energy bills, improve energy security and safeguard natural ecosystems.
The MoU also builds on a broader UK strategy of economic cooperation with US states, adding to similar agreements already in place with states including Washington and Florida.
Climate resilience and biodiversity protection feature prominently in the new partnership. The UK and California will share practical expertise on adapting to extreme weather, protecting homes and infrastructure, and strengthening local economies increasingly exposed to climate risks.
Both economies are seeing rapid growth in clean energy. According to the CBI, the UK’s net zero economy expanded three times faster than the wider economy in 2024. California, meanwhile, has reported clean energy job growth at a rate three times higher than the rest of its state economy. With similarly ambitious climate targets and a shared policy outlook, officials on both sides say the new agreement formalises what has already been a close working relationship.
Business groups have welcomed the deal, arguing it sends a strong signal to investors and could unlock significant new growth opportunities in one of the world’s most dynamic clean energy corridors.
Nick Chaset, CEO at Octopus Energy US, said:
“As a British tech business and investor growing in the US, this MoU opens up opportunities to bring our smart technology to California, cutting energy bills and improving the customer experience. We are already delivering that through our work with Southern California Edison, where the Octopus Shift app enables EVs and home batteries to support the grid and give customers more control over when and how they use energy.
This agreement gives investors like Octopus greater confidence to bring more of our proven technology to the state, like Octopus Electroverse. Already the world’s largest public charging platform, live across 1.3 million chargers in 50 countries. It is exactly the kind of customer-first innovation we are excited to scale through closer UK-California collaboration”.