MONTREAL and TOKYO, Dec. 4, 2025 -- Deep Sky, the Canada-based tech-agnostic Direct Air Capture (DAC) project developer announced today at the DeCarbon Tokyo 2025 Conference a strategic partnership with Sumitomo Mitsui Banking Corporation (SMBC), one of Japan's leading financial institutions.
Deep Sky and SMBC will collaborate to build a robust DAC and high-integrity carbon dioxide removal (CDR) market in Japan by jointly developing commercial pathways, financing structures, and policy frameworks that will enable rapid scale.
Partnership focus
The collaboration will concentrate on three priority areas:
- Creating pathways for DAC carbon credit offtakes in Japan
- Business collaboration locally and with Japanese companies globally
- Advancing Japan's DAC ecosystem and enabling policy
A timely step for Japan's net zero path
Japan has set ambitious decarbonization goals, and leading institutions are increasingly recognizing that high-quality engineered removals like DAC will be essential to address residual emissions. SMBC's climate strategy emphasizes pragmatic, forward-looking support for emerging technologies, paired with disciplined evaluation and close collaboration with industry and government.
Deep Sky's tech-agnostic project platform and Canadian operating experience are designed to bring bankable, scalable DAC to markets that are ready to move.
The partnership reflects growing momentum among Japanese financial and industrial leaders to unlock durable CDR solutions and to develop the commercial and financial infrastructure needed for scale. SMBC and its affiliated companies have demonstrated active engagement in carbon markets and decarbonization solutions, including investments in carbon credits and support for customers' net-zero pathways.
Leadership perspectives
"Japan is one of the most important frontiers for the next phase of durable carbon removal," said Alex Petre, CEO of Deep Sky. "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, 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."
Looking ahead
Deep Sky and SMBC will begin joint market development efforts immediately. This strategic partnership demonstrates a shared focus on DAC as a critical climate solution, strong confidence in Deep Sky's capacities to deliver and signals alignment between Deep Sky and SMBC on scaling durable carbon removal in Japan.
