UK and California deepen ties on clean energy

Representatives for the UK and California have signed a new agreement in London, building on decades of cooperation on climate and clean energy.

Signed by UK Energy Secretary Ed Miliband and California Governor Gavin Newsom, the Memorandum of Understanding (MoU) deepens decades of cooperation between the UK and California.

It creates a refreshed framework to drive innovation, scale up clean energy technologies, and connect businesses and researchers across both economies.

Ed 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 strengthen opportunities for UK businesses and secure investment for our country.”

Creating strong links between the UK and California

This agreement will connect the UK’s fast-growing clean energy sector with the Californian market, opening new export opportunities and supporting skilled jobs across the UK.

Moreover, it helps British businesses to compete and grow, with companies like Octopus Energy already expanding on the West Coast.

The partnership will also see both governments share practical expertise on protecting biodiversity and building resilience for our communities in the face of extreme weather. This will help protect homes, public services, and local economies from the climate crisis.

It also commits to strengthening UK and California cooperation on clean energy, climate, and the environment to accelerate the rollout of technologies that cut families’ bills, reduce exposure to volatile fossil fuel markets, and protect the natural environment.

This builds on other MoUs signed by the UK focused on economic cooperation with 11 other US states, including Washington and Florida.

The state of the clean energy market in the UK and California

The UK’s and California’s clean energy markets are growing rapidly, with the UK’s net-zero economy expanding three times faster than the overall UK economy in 2024, according to the CBI.

Meanwhile, California saw similarly rapid clean economic growth, with three times as many clean energy jobs created as in the rest of the state’s economy.

The UK and California share equally ambitious energy and climate targets and have a history of collaboration on policy in this space.

“California is the best place in America to invest in a clean economy because we set clear goals and we deliver,” explained Gavin Newsom.

“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.”

Growth opportunities for British businesses

Businesses have backed the agreement, highlighting significant growth opportunities for British businesses to expand into the US market.

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.

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