A memorandum of understanding has been signed by the Department for Energy and Climate Change and Masdar, the Abu Dhabi Future Energy Company in the United Arab Emirates.
It aims to develop technology such as carbon capture and storage and marine, solar and wind power. A separate £250 million partnership between the UK and Qatar will be run by the Carbon Trust.
Energy and climate change secretary Ed Miliband said: "Low-carbon energy sources can provide a new engine of global economic growth. This partnership represents a significant contribution to our sustainable prosperity."