The United Kingdom and the US state of California have signed a new Memorandum of Understanding (MoU) in London to accelerate cooperation on clean energy and strengthen transatlantic investment.
The pact establishes a refreshed framework intended to drive innovation, expand deployment of clean energy technologies and connect businesses and researchers in both markets.
Officials said the partnership will link the UK’s growing clean energy sector with the Californian market, opening export opportunities and supporting skilled employment. Companies including Octopus Energy are already expanding operations on the US West Coast.
The agreement also commits both governments to deepen collaboration on climate action and environmental protection, with the goal of accelerating technologies that reduce energy costs and limit exposure to volatile fossil fuel markets. Cooperation will extend to biodiversity protection and strengthening community resilience against extreme weather.
According to the Confederation of British Industry (CBI), the UK’s net-zero economy grew three times faster than the broader economy in 2024. California reported similarly strong momentum, creating clean energy jobs at roughly triple the pace of the rest of its economy.
UK Energy Secretary Ed Miliband said the partnership would help deliver the government’s energy strategy.
“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.”
California Governor Gavin Newsom said the state would continue positioning itself as a global clean economy hub.
“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.”
Industry participants also welcomed the move. Nick Chaset, chief executive of Octopus Energy US, said the MoU would help the company expand smart energy technology deployments in California.
“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.”
He added that the company is already working with Southern California Edison to enable electric vehicles and home batteries to support grid operations through its Octopus Shift platform.
Chaset said the agreement would give investors greater confidence to scale additional offerings such as the Octopus Electroverse charging platform across the state.
