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The UK and California are to work together on reducing greenhouse gases and promoting low carbon technologies.

The agreement came after a climate change meeting in Long Beach of Tony Blair, the US state's governor Arnold Schwarzenegger and business leaders.

They would look at whether they could co-operate on an emissions trading scheme, said a spokesman for Mr Blair.

"We are at least on our way to putting in place the framework that will resolve this problem," Mr Blair said in a press conference afterwards.

The meeting - also attended by BP boss Lord Browne and Virgin chief Sir Richard Branson - follows climate change talks between Mr Blair and US President George W Bush at the G8 summit.

The resulting mission statement - signed by both Mr Blair and Mr Schwarzenegger - says Britain and California will "commit to urgent action to reduce greenhouse gas emissions and promote low carbon technologies".

"California and the UK recognise the linkages between climate change, energy security, human health and robust economic growth," it adds.

"Working together, California and the UK commit to build upon current efforts, share experiences, find new solutions and work to educate the public on the need for aggressive action to address climate change and promote energy diversity."