Sumitomo Mitsui Banking Corp Invests in Deep Sky to Boost DAC and Carbon Removal in Japan

Sumitomo Mitsui Banking Corp (SMBC) has made its first investment in the carbon removal sector, backing Canadian company Deep Sky to help build a direct air capture and carbon dioxide removal market in Japan. The investment comes from SMBC's Social Value Creation Investment Fund, though the amount was not disclosed. The partnership builds on a 2025 agreement and aims to develop DAC projects, CO2 storage, and high-quality carbon removal credits for Japanese buyers. Deep Sky CEO Alexandra Petre said Japan is a critical market for DAC with real demand and a maturing policy environment. SMBC will use the partnership to learn about technology deployment and carbon credit generation, then apply that knowledge to support its customers' decarbonization goals. The deal was signed during a Team Canada trade mission to Tokyo, highlighting growing Canada-Japan cooperation on clean technology and carbon removal.