The US, Canada and Mexico have agreed to generate 50% of their power generation from renewable sources by 2025.
As part of the North American climate, clean energy, and environment partnership, the three countries will focus on clean energy development and deployment, clean energy innovation and energy efficiency.
This forms a part of United Nations (UN) climate change agreement signed in Paris in 2015 which sought for carbon emissions reduction globally.
Canada Prime Minister Justin Trudeau, US President Barack Obama, and Mexico President Enrique Peña Nieto said in a joint statement: "Our actions to align climate and energy policies will protect human health and help level the playing field for our businesses, households, and workers."
In an effort to meet 50% clean power target, the three countries agreed to undertake range of initiatives, including reducing power waste by aligning ten appliance efficiency standards or test procedures by 2019.
In addition to developing 5,000MW of cross-border transmission projects to facilitate deployment of clean power, the countries will conduct joint study of the opportunities and impacts of adding more renewables to the electric grid on a continental basis.
The partnership will see greening of government operations to 100% clean energy by 2025.
The White House said in a statement: "These efforts will not only reduce the impacts of climate change and help all three countries meet their commitments under the Paris agreement, but they will also provide important benefits for the economy as a whole and support hundreds of thousands of jobs."
Additionally, the US, Mexico and Canada also committed to reduce methane emissions from existing and new sources in the oil and gas sector to 40%-45% by 2025.