DAI Labs today announced its selection as a recipient of a prestigious grant through the “Subsidies for Global South Future Oriented Co Creation Project in the FY 2023 Supplementary Budget” program, administered by Japan's Ministry of Economy, Trade and Industry (METI). The grant will fund the “AI and GIS-based Carbon and Land Use Monitoring System Demonstration Project” in Malawi, aimed at enhancing the reliability and efficiency of carbon capture initiatives. DAI Labs will work closely with Offset8 Capital and iRise Carbon to demonstrate the project by February 2026.

Background

The global carbon capture and carbon credit market is an increasingly vital mechanism for encouraging companies worldwide to reduce their greenhouse gas emissions. Japan has demonstrated significant commitment to this area, notably through the launch of the Carbon Credit Market on the Tokyo Stock Exchange in 2023 as well as support by the Japanese government of a mandatory carbon emissions trading system (GX-ETS) commencing in fiscal year 2026 for certain high-emission companies. In a separate effort to foster the expansion of Japanese technologies and businesses into emerging economies the Japanese government has initiated the “Subsidies for Global South Future Oriented Co Creation Project in the FY 2023 Supplementary Budget” grant for companies based in Japan.

Under this grant initiative, DAI Labs has been chosen to adapt and deploy its advanced satellite-based AI system for monitoring and predicting carbon capture in forestry projects. For this ambitious undertaking, DAI Labs will be collaborating closely with iRise Carbon, a Malawian organization, and Offset8, based in Abu Dhabi. Together, they will implement the software solution for its reforestation projects in Malawi, with the core objective of strengthening the integrity and trustworthiness of the carbon credit market.

Project Details

DAI Labs has a proven track record in developing sophisticated image-based AI systems for the Japanese market, including advanced satellite data analysis platforms. For the Malawi demonstration project, DAI Labs will work in concert with Offset8 and iRise Carbon to implement a comprehensive monitoring system across a 6,000 hectare area. The software demonstration project is slated for completion by February 2026.

The system will utilize a combination of spectral satellite imagery and Synthetic Aperture Radar (SAR) data to accurately monitor and predict existing carbon stocks. Crucially, it will also assist in identifying optimal sites for new forest plantings and forecasting their carbon sequestration potential. iRise Carbon will play a key role by providing essential technical support and on-the-ground data collection in Malawi, which will be vital for training and validating the AI-based system’s results. Offset8 will contribute its expertise in strategy and implementation support for the project, while also serving as a liaison with Japanese organizations invested in the carbon credit market.

The DAI Labs demonstration project is part of a larger initiative by iRise Carbon, to develop over 500,000 hectares of degraded land, of which iRise Carbon and Offset8 will be focusing on restoring 56,000 hectares of degraded land, improving food security in Malawi and other environmental initiatives.

iRise Carbon’s projects have already obtained authorization from the Government of Malawi to trade carbon credits generated by the project internationally under Article 6 of the Paris Agreement. 

Expected Outcome and Future Business

By the conclusion of the demonstration period in February 2026, the project aims to deliver a carbon storage monitoring system that is significantly more cost-effective and provides higher quality data than current monitoring solutions, which often rely on extensive and expensive ground and aerial data collection methods. This enhanced monitoring capability is expected to enable project partners to achieve faster and cheaper accreditation for their carbon capture projects, thereby increasing trust among carbon credit buyers.

Building on the results of this demonstration, DAI Labs, iRise Carbon, and Offset8 intend to explore opportunities to expand the usage of this software and its associated systems to other forestry projects around the world. The innovations and findings from this project are anticipated to improve the overall reliability of the carbon credit market, not only in Japan but globally, while drastically reducing the costs associated with project planning and ongoing monitoring.

About DAI Labs

DAI Labs is an AI technology company headquartered in Minato-ku, Tokyo. The company specializes in developing and implementing cutting-edge AI systems for corporate and municipal clients, with a strong focus on delivering high-quality AI prototypes within short timeframes. With extensive experience in designing and operating advanced AI models, DAI Labs also contributes to addressing a wide range of social challenges.

The company applies its technologies across various fields, including the development of forest monitoring systems that combine AI and GIS (Geographic Information Systems). Through the provision of flexible, client-tailored AI solutions, DAI Labs supports operational efficiency and promotes digital transformation (DX).

Contact:
Media Team, info@dailabs.ai
Homepage: dailabs.ai

About Offset8 Capital

Offset8 Capital Limited is an Abu Dhabi Global Market-based proprietary asset management firm and a financial advisor regulated by the Financial Services Regulatory Authority of the ADGM. Offset8 seeks to finance climate mitigation and adaptation projects, with a focus on mangrove restoration, reforestation, and biochar. Of particular relevance will be projects that aim to support local communities in Africa and Southeast Asia and to contribute to both environmental conservation and sustainable economic development.

Contact:
Media Team, media@offset8capital.com
Homepage: offset8capital.com

About iRise Carbon

iRise Carbon is a mission-driven organization with a focus on mitigating climate change while alleviating poverty. iRise Carbon delivers its integrated model in rural, underdeveloped communities with significant land degradation. The company combines indigenous afforestation, while integrating community infrastructure, to deliver high-quality carbon offset volumes and lasting, genuine economic and social development. The iRise Carbon program is scalable, prosperous, and equitable – driving a just net zero transition without compromising community or society, nature or returns.

Contact:
Media Team, info@irisecarbon.com
Homepage: irisecarbon.com