Deep Sky, a Canada-based developer of direct air capture (DAC) projects, has announced a partnership with Sumitomo Mitsui Banking Corporation (SMBC) at the DeCarbon Tokyo 2025 Conference. The agreement aims to support the development of Japan’s high-integrity carbon dioxide removal (CDR) market through new commercial pathways, financing models and policy structures.
The collaboration will focus on three areas: creating routes for DAC carbon credit offtakes in Japan, supporting business collaboration domestically and internationally with Japanese firms, and contributing to policy development to advance Japan’s DAC ecosystem.
Japan’s net-zero strategy recognises that engineered removals such as DAC will be required to address hard-to-abate emissions. SMBC has identified emerging climate technologies as an area for targeted support, emphasising collaboration with industry and government. Deep Sky said its technology-agnostic development model and Canadian operational experience position it to help bring “bankable, scalable DAC” to markets preparing to deploy the technology.
The partnership reflects rising interest among Japanese financial and industrial groups in building the commercial and financial frameworks needed to scale durable CDR solutions. SMBC and its affiliates have previously participated in carbon markets and backed decarbonisation initiatives for clients.
Alex Petre, CEO of Deep Sky, said: “Japan is one of the most important frontiers for the next phase of durable carbon removal. By partnering with SMBC, we are combining Deep Sky’s project development capabilities with one of Japan’s most influential climate finance platforms. Together, we will help Japanese companies access high-integrity, permanent removals and work to build the market structures that allow DAC to scale.”
Kenji Irie, Executive Officer and General Manager of the Sustainability Planning Department at SMBC, added: “SMBC is striving to contribute to supporting the decarbonization of the real economy through provision of transition finance, contribution to emerging technologies, and collaboration with stakeholders. Deep Sky brings a unique project developer model and deep operational insight into DAC. Through this partnership, we aim to contribute to the advancement of DAC and CDR in Japan and to support our clients in achieving their net-zero goals.”
Both organisations said joint market-development efforts will begin immediately.
