Britain has forged a deeper alliance with California on clean energy and climate action, as Energy Secretary Ed Miliband and Governor Gavin Newsom signed a new agreement aimed at boosting transatlantic investment and environmental protection.
The memorandum of understanding (MOU) was formalised during a meeting at the Munich Security Conference in Germany on Monday.
This accord seeks to stimulate transatlantic investment, enhance collaboration between research institutions, facilitate access to the Californian market for clean energy businesses, and exchange expertise on nature conservation and building resilience against extreme weather events.
This marks the 12th such agreement the UK has established with individual US states, including Washington and Florida.
However, it stands in contrast to British engagement on energy with President Donald Trump’s administration.
The federal government has rolled back climate action and supported fossil fuels, notably revoking a scientific finding last week that legally underpinned US efforts to reduce planet-heating emissions.
While Mr Trump has previously dismissed climate change as a “hoax”, Governor Newsom has actively pursued the expansion of state-level green policies in California and maintained multilateral cooperation with other nations.
Recognising their shared ambition and established partnership in clean energy, the newly signed accord provides a refreshed framework to accelerate the transition through innovation, scaling new technologies, and connecting experts across both economies.
Mr Miliband stated: “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 Newsom commented: “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.”
The UK Energy Department anticipates the agreement will unlock new export opportunities, create skilled job prospects across the UK, and empower British businesses to compete and expand, with companies like Octopus Energy already growing on the US west coast.
It is hoped this enhanced cooperation will ultimately help reduce bills, bolster energy security by lessening reliance on fossil fuel markets, safeguard the natural environment, and protect homes, public services, and local economies from the impacts of climate change.
Nick Chaset, chief executive at Octopus Energy US, which has endorsed the new partnership, 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.”
Despite acknowledging “open disagreements” with the Trump administration on clean power, the UK Government has promoted nuclear energy as a key area of strategic alignment, with Prime Minister Sir Keir Starmer and Mr Trump signing a significant nuclear power deal in September.
Nevertheless, Mr Trump has repeatedly criticised the UK’s green energy policies, labelling wind energy a “con” and advocating for the exploitation of North Sea fossil fuel reserves.
