California and Finland signed a Memorandum of Understanding on September 23, 2026, during Climate Week NYC. It creates a framework for cooperation on clean technology, quantum computing, cybersecurity, aerospace, life sciences and the forest bioeconomy. The pact adds to a growing list of trade and technology agreements California negotiates directly with national governments.
Key Takeaways
- Governor Gavin Newsom and Finnish Foreign Minister Elina Valtonen signed the California-Finland MOU in New York on September 23, 2026.
- The agreement covers clean technology and sustainability, aerospace and defense innovation, health and life sciences, emerging technologies, quantum computing, cybersecurity, research, and the sustainable forest bioeconomy.
- It calls for policy exchanges, joint research, business engagement and closer ties between California and Finnish local and regional governments.
- California’s administration says it has formed more than 70 international partnerships since 2019, including agreements with the United Kingdom, Brazil, Kenya, Chile, Nigeria and Denmark.
- The same day, California moved to link its carbon market with Washington State’s, building toward a three-jurisdiction trading system with Québec.
The California-Finland Framework Focuses on Future Industries
The California-Finland agreement is less a trade deal in the traditional sense than a structured commitment to work together in sectors both economies see as central to future growth. It sets up channels for exchanging policy ideas and best practices, supporting research collaborations, promoting business engagement, and building ties between Finnish and Californian local and regional authorities.
The sector list points to where each side sees opportunity. Quantum computing and cybersecurity sit next to aerospace and life sciences, and together they describe a technology relationship focused on the next decade rather than the last. The inclusion of the sustainable forest bioeconomy reflects Finland’s long reliance on forestry, alongside California’s own need to manage vast forested lands in an era of wildfire risk.
Finnish Foreign Minister Elina Valtonen said the partnership creates new economic opportunities and strengthens collaboration and dialogue on innovation and emerging technologies across the Atlantic. Dee Dee Myers, Director of California’s Governor’s Office of Business and Economic Development, called both partners leaders in innovation and sustainability, and said the agreement would open new opportunities in clean energy and emerging technologies.
Subnational Economic Diplomacy Moves Into the Mainstream
The California-Finland MOU fits a pattern that has become more visible in global economic affairs. Large subnational economies now negotiate directly with sovereign governments on trade, technology and climate. California’s economy would rank among the largest in the world if it were a country, and it has used that weight to build a network of bilateral arrangements outside traditional national trade negotiations.
According to the Governor’s Office, California has formed more than 70 international partnerships since 2019. Recent examples include a 2026 memorandum with the United Kingdom on clean energy and climate resilience, 2025 agreements with Chile on methane reduction and with Nigeria on sustainable transportation and green ports, a 2025 partnership with Brazil’s federal government on carbon pricing and clean transportation, and a 2025 agreement with Kenya on low-carbon development and trade.
These agreements are not binding treaties. They do not change tariffs or override national trade policy. Their value is practical. They create working relationships between regulators, researchers and businesses that can lead to joint projects, investment and shared technical standards. For countries like Finland, a direct line to California offers access to one of the world’s densest concentrations of technology companies, universities and venture capital.
Earlier Partnerships Show What These Agreements Can Deliver
The track record of earlier California partnerships helps explain why foreign governments keep signing them. Under a 2023 agreement with Australia, input from the California Air Resources Board helped inform Australia’s first-ever vehicle carbon emissions standards. California’s grid operator and utilities regulator also advised Australia on electricity market reform. Newsom met again with Australian officials in New York to discuss energy security, battery storage and zero-emission transportation.
A 2021 agreement with Denmark on groundwater mapping and water efficiency has helped modernize California’s water data systems. A wildfire assistance agreement with British Columbia led to cross-border deployments of firefighting personnel in both directions during the 2025 fire season.
Carbon Market Linkage Extends the Cross-Border Agenda
The Finland agreement came on the same day California took a significant step toward expanding its carbon market across borders. Newsom made the legal findings needed for the California Air Resources Board to begin the formal process of linking California’s Cap-and-Invest program with Washington State’s carbon market. Washington has already completed its own regulatory changes to align with the existing California-Québec market.
If completed, the linkage would create a three-jurisdiction trading system spanning two U.S. states and a Canadian province. Supporters argue that larger carbon markets are more stable and give industries more cost-effective ways to cut emissions. California’s program, now 13 years old, has generated $37 billion in climate investments, according to the state.
What the California-Finland Pact Means for Global Business
For companies and research institutions on both sides of the Atlantic, the California-Finland MOU sends a signal more than it sets rules. It tells Finnish startups, universities and investors that California’s government is open to collaboration in quantum computing, cybersecurity and clean technology, and it gives Californian firms a reason to look toward the Nordic region for partners.
The broader lesson for global markets is that economic cooperation is increasingly multilayered. National governments still set trade policy. Alongside them, a parallel network of state, provincial and regional agreements is shaping where research money flows, how technical standards develop, and which companies find their next partners abroad.
FAQs
What did California and Finland sign?
California and Finland signed a Memorandum of Understanding on economic partnership and development on September 23, 2026. It creates a framework for cooperation across several technology and sustainability sectors.
Which industries does the California-Finland partnership cover?
The agreement covers clean technology and sustainability, aerospace and defense innovation, health and life sciences, emerging technologies, quantum computing, cybersecurity, research, and the sustainable forest bioeconomy.
Who signed the California-Finland MOU?
Governor Gavin Newsom signed for California, and Foreign Minister Elina Valtonen signed for Finland. The signing took place during Climate Week NYC.
Is the California-Finland agreement a trade treaty?
No. A Memorandum of Understanding is a non-binding framework for cooperation. It does not change tariffs or national trade policy, but it sets up channels for research, policy exchange and business engagement.
How many international partnerships has California signed?
California’s Governor’s Office says the state has formed more than 70 international partnerships since 2019, with countries and regions including the United Kingdom, Brazil, Kenya, Chile, Nigeria, Denmark and Australia.
