Ed Miliband and Gavin Newsom have signed a new agreement intended to deepen cooperation between the UK and California on clean energy investment, innovation and environmental resilience.
The Memorandum of Understanding (MoU) was signed in London, with both sides saying it will create a refreshed framework to connect businesses and researchers across their economies, and help scale technologies that support the clean energy transition.
Ministers said the partnership is designed to strengthen transatlantic investment and create new opportunities for UK firms in California’s clean energy market, while also improving collaboration between research institutions.
The MoU also includes a commitment to share practical expertise on protecting biodiversity and building resilience for communities facing more frequent extreme weather, with the stated aim of reducing risk to homes, public services and local economies.
Ed Miliband, the UK’s Energy Secretary, noted, “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 added, “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 agreement comes at a time when US federal policy is pulling in the opposite direction. Since returning to the White House in January 2025, Donald Trump has pushed to unwind elements of the US climate and clean energy agenda, including moves to roll back clean energy tax incentives and to revoke the United States Environmental Protection Agency’s 2009 “endangerment finding”, which underpins much of the country’s greenhouse gas regulation.
California has made it very clear that it’s still keen to decarbonise – pledging to reach net zero by 2045 – and against that backdrop, state-level partnerships such as this one give the UK a route to keep building clean energy links with California even as Washington’s priorities shift.
Octopus Energy Generation announces near-$1 billion California investment
Alongside the MoU, Octopus Energy Generation announced it is ‘injecting nearly $1 billion’ into Californian clean tech, including carbon removal, heat batteries, and a solar-plus-storage project that is expected to become fully operational by July 2026.
The company said it will back two Californian carbon removal firms focused on grassland restoration and reforestation, and will invest in heat batteries aimed at decarbonising industrial processes that are difficult to electrify. It also said it will acquire a solar and battery project in the state.
Octopus Energy Generation said the deals form part of its wider ambition to deploy $2 billion in the US energy transition by 2030, and that the announcement was made during Newsom’s visit to the company’s London headquarters.
Zoisa North-Bond, CEO at Octopus Energy Generation, commented, “Octopus and California are both leading the way in clean energy innovation. With supportive policy and world-class entrepreneurship in and around Silicon Valley, it’s an ideal place to back long-term investment partnerships that will benefit the UK economy.
“We’re excited to expand Octopus internationally, backing the booming U.S. clean tech sector while bringing innovation, growth and returns to the UK.”
