Mitsubishi Electric’s ME Innovation Fund Invests in Archeda to Boost Trust in Carbon Credits through Satellite Data and AI
TOKYO – Mitsubishi Electric Corporation (TSE: 6503) announced today that its ME Innovation Fund has made a strategic investment in Archeda, Inc., a Japanese startup leveraging satellite data and AI to develop monitoring and analysis tools for carbon credits. This marks the fund’s eleventh investment to date.
As global efforts toward carbon neutrality accelerate, carbon offsetting has become a crucial strategy. It involves companies reducing their own greenhouse gas emissions as much as possible and offsetting any remaining emissions by investing in sustainable initiatives that remove or reduce greenhouse gases. In Japan, the demand for nature-based carbon credits—generated from environmental conservation and protection—is expected to grow, especially with the launch of a national emissions trading scheme in fiscal 2027. This upcoming system will set CO₂ emission caps for companies emitting over 100,000 tons annually, allowing them to trade allowances. However, concerns remain around the transparency and credibility of carbon credit issuance.
Archeda is addressing these challenges by using satellite data, including imagery from the Advanced Land Observing Satellite-2 “DAICHI-2” (ALOS-2)—developed by Mitsubishi Electric. By applying proprietary AI-based analysis, Archeda monitors environmental changes and measures carbon sequestration at project sites with high accuracy. The company also enhances the reliability of carbon credits by performing precise baseline assessments—estimating emissions that would occur without a reduction effort and comparing them to actual outcomes after interventions.
Through this investment, Mitsubishi Electric aims to strengthen collaboration with Archeda by sharing its expertise in satellite data analytics. The partnership is expected to contribute significantly to Japan’s and Asia’s carbon neutrality goals.
Hiromasa Tsumura, CEO of Archeda, stated,
We are honored to receive the support of Mitsubishi Electric, a global leader in satellite technology. By integrating satellite data with AI, we aim to create a trustworthy framework for assessing natural capital in Asia and build a future where environmental conservation and economic growth coexist.
Komi Matsubara, Executive Officer and Vice President of Business Innovation at Mitsubishi Electric, commented,
Archeda is a pioneer in satellite-based environmental monitoring. Their work aligns with our mission to enhance the reliability of carbon credits. We believe this investment will strengthen our satellite data utilization business and help promote global carbon neutrality.