Long Beach, Calif. ? British Prime Minister Tony Blair and California Gov. Arnold Schwarzenegger announced an agreement Monday to bypass the Bush administration and work together to explore ways to fight global warming.

The two leaders announced the pact as they met with business leaders to discuss clean energy and climate issues against the backdrop of a BP oil tanker at a terminal in the Port of Long Beach.

“We see that there is not great leadership from the federal government when it comes to protecting the environment,” Schwarzenegger said. “We know there is global warming, so we should stop it.”

Addressing business leaders during an earlier panel discussion, Blair called global warming “long-term, the single biggest issue we face.”

The agreement calls for collaboration on research into cleaner-burning fuels and technologies, and looking into the possibility of setting up a system whereby polluters could buy and sell the right to emit greenhouse gases. The idea is to use market forces and market incentives to curb pollution.

Environmental groups questioned the value of the agreement, calling it little more than a symbolic gesture.

California is looking to cut carbon dioxide – a byproduct of coal, oil and gasoline combustion – and other heat-trapping gases that scientists say are warming the planet. President Bush has rejected the idea of ordering such cuts.

California Gov. Arnold Schwarzenegger, left, and British Prime Minister Tony Blair participate in a news conference at the Port of Long Beach, Calif. Blair and Schwarzenegger joined a group of CEOs and business leaders from California and international companies at a roundtable discussion on how business and government can work together to reduce greenhouse gases and emissions.

“This is an agreement to share ideas and information. It is not a treaty,” said Schwarzenegger spokesman Adam Mendelsohn. “Right now, all we are doing is talking about sharing ideas.”

“It will be markets, not governments, that will decide which technologies are chosen in the future. Governments can give clear, credible, long-term signals to the market which will enable companies to develop the technology that will result in cleaner technology, more energy efficient technology,” said a Blair spokesman, speaking on condition of anonymity, in line with government policy.

For Schwarzenegger, a Republican who is running for a full term in November, the agreement comes at a time when he has been trying to distance himself from Bush in this mostly Democratic state.

His aides disputed speculation that the agreement was an attempt to sidestep the White House. In a conference call with reporters, state Environmental Secretary Linda Adams said the agency is in “constant contact” with federal regulators, but added that there was no discussion with Washington about Monday’s agreement.