SMBC Invests in Deep Sky to Boost Carbon Dioxide Removal Market in Japan

Sumitomo Mitsui Banking Corporation has made a strategic investment in Deep Sky, a Montreal-based carbon removal project developer, to advance Japan's carbon dioxide removal and direct air capture sector. The investment comes from SMBC's Social Value Creation Investment Fund and marks the bank's first move into CDR and DAC. The partnership aims to support sourcing of DAC-based carbon credits and create opportunities for collaboration with project developers and corporate buyers in Japan. Deep Sky is a tech-agnostic carbon removal project developer focused on bringing direct air capture and ocean carbon capture companies together to generate high-quality carbon credits. The company has raised $130 million from investors including Breakthrough Energy Catalyst and OMERS Ventures. The deal was signed during a Team Canada Trade Mission to Japan, highlighting growing Canada-Japan cooperation in clean technology and carbon removal. The investment builds on a memorandum of understanding signed in December 2025. SMBC will leverage Deep Sky's expertise in DAC project development and CO2 storage to help its customers with decarbonization and to grow the CDR market in Japan. Terms of the investment were not disclosed.