Canada issues first DAC carbon credits

June 30, 2026

Canadian carbon removal company Deep Sky has reached a major milestone by becoming the first organization in North America to issue independently verified carbon removal credits generated through direct air capture (DAC) technology. The initial credits have been supplied to Microsoft and the Royal Bank of Canada (RBC), marking a significant step forward for the continent’s carbon removal industry.

Direct air capture expands carbon removal solutions

Unlike conventional carbon capture and storage (CCS), which captures carbon dioxide at industrial facilities before it enters the atmosphere, direct air capture extracts existing CO₂ directly from ambient air. This approach helps eliminate legacy emissions that have already accumulated, making it an increasingly important tool in global climate mitigation strategies.

Deep Sky CEO Alex Petre said the achievement demonstrates Canada's growing leadership in carbon removal innovation and highlights the country's willingness to invest in emerging climate technologies.

Verified carbon removal credits gain momentum

Deep Sky joins a very small group of companies capable of producing verified DAC-based carbon removal credits. Until now, Iceland-based Climeworks had been the only company to successfully issue this type of verified credit from its large-scale direct air capture facility.

Although experts widely recognize DAC as an essential technology for achieving long-term net-zero goals, deployment remains challenging due to high operational costs, significant energy requirements, and the complexity of scaling commercial projects.

Strong demand from corporate climate leaders

Demand for high-integrity carbon removal credits continues to accelerate as businesses seek credible ways to offset unavoidable emissions. Technology companies, in particular, are investing heavily in permanent carbon removal while managing the growing emissions associated with expanding AI infrastructure and data centers.

According to Petre, organizations continue signing long-term carbon removal agreements despite the industry's limited number of operational projects, reflecting confidence in the technology's future.

Alberta pilot facility demonstrates dommercial potential

Deep Sky's pilot facility in Alberta, which entered operation last year, is designed as a testing hub where multiple direct air capture technology providers can deploy, optimize, and validate their systems. The site is expected to remove approximately 3,000 metric tons of CO₂ annually once operating at planned capacity.

The company's first verified credits were generated after permanently storing 14 metric tons of captured carbon underground during its inaugural injection completed in May.

Independent verification was carried out by London-based climate certification company Isometric, providing confidence that the removals meet rigorous scientific and accounting standards.

Quarterly credit deliveries and future expansion

Following the successful initial storage operation, Deep Sky plans to continue underground carbon injections on a regular basis, with Microsoft and RBC receiving verified carbon removal credits every quarter.

The company has also secured carbon removal agreements with TD Bank, Lufthansa, and Engie, although financial details remain confidential.

Looking ahead, Deep Sky intends to use lessons learned from its Alberta demonstration hub to develop a full-scale commercial direct air capture facility in Canada, supporting the country's ambitions to become a global leader in permanent carbon removal and climate innovation.