California–UK climate alliance strengthened with billion-dollar clean tech pledge

Governor Gavin Newsom has announced an expanded climate partnership between the State of California and the United Kingdom, aimed at strengthening cooperation on climate action, clean energy and sustainable development.

During his visit to London, Newsom met UK leaders to advance collaboration in climate policy, business and trade. The Governor and Ed Miliband, the UK Secretary of State for Energy Security and Net Zero, signed a Memorandum of Understanding (MOU) to deepen cooperation on climate initiatives, including clean energy technologies such as offshore wind.

The agreement builds on longstanding economic and cultural ties between California and the UK, reinforcing joint efforts to accelerate innovation and expand clean energy markets at a time when communities globally are facing rising costs, extreme weather and increasing wildfire risks linked to climate change.

Newsom concluded his trip with a visit to the headquarters of Octopus Energy, where the clean-tech firm announced it would invest nearly $1 billion in California companies and projects focused on clean energy, carbon removal and nature-based solutions. The commitment is expected to support California’s growing clean technology sector and expand transatlantic investment flows.

“California is the best place in America to invest in a clean economy because we set clear goals and we deliver,” Newsom said, describing the partnership as a demonstration of how climate ambition can be translated into economic opportunity.

Ed Miliband said the UK Government’s clean energy mission aims to strengthen energy security, reduce bills and create jobs while tackling the climate crisis, adding that stronger international partnerships would help secure investment and expand opportunities for UK businesses.

Octopus Energy Generation CEO Zoisa North-Bond said California’s policy stability and strong entrepreneurial ecosystem make it an attractive destination for long-term clean energy investment, noting that the expansion would support growth in both the UK and US markets.

The announcement comes amid political tensions in Washington. Donald Trump criticised the clean energy agreement shortly after it was signed, reportedly describing it as “inappropriate” for Britain to engage directly with the Democratic governor. Trump also criticised Newsom’s environmental record, while a spokesperson for the Governor defended California’s climate leadership and said the state would continue advancing clean energy policies.

The UK–California agreement signals continued subnational and international cooperation on climate policy, even as federal debates in the United States intensify ahead of the 2028 presidential race, in which Newsom has been widely speculated as a potential Democratic contender.

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