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

Sumitomo Mitsui Banking Corporation (SMBC) has made a strategic investment in Deep Sky, a Montreal-based carbon removal project developer, to help grow Japan's carbon dioxide removal (CDR) and direct air capture (DAC) market. The investment comes from SMBC's Social Value Creation Investment Fund and marks its first move into the CDR/DAC sector. Deep Sky will provide expertise in project development, CO2 storage, and high-quality carbon credit generation to support Japanese companies in sourcing DAC-based credits. This deal builds on a December 2025 memorandum of understanding between the two firms. It was signed during a Team Canada Trade Mission to Japan, highlighting growing Canada-Japan collaboration on clean technology. Deep Sky, backed by $130 million in funding from investors like Breakthrough Energy Catalyst and OMERS Ventures, focuses on tech-agnostic carbon removal to permanently store CO2 underground. The partnership aims to create demand for durable carbon removal credits and build market infrastructure in Asia.