British Energy Secretary Chris Huhne welcomed a Chinese delegation to London to sign a memorandum of understanding to promote a low-carbon economy at the provincial level in China.
"Making green growth a reality for both countries will be crucial for prosperity, the environment and for our energy security," Huhne said in a statement.
London is looking for alternative and renewable energy resources as conventional energy sources in the North Sea start to run dry. China is one of the world's leading energy consumers and emitters of harmful greenhouse gases.
Both sides, under the memorandum, will exchange expertise on low-carbon planning and emissions accounting and trading.
Initially, the joint effort will work on low-carbon policies in the Chinese provinces of Chongqing, Guangdong and Hubei.
"Today's agreement demonstrates that the U.K. and China want to accelerate this shift to low carbon and are committed to greater collaboration on energy markets and low carbon technology," said Huhne.