A Japanese climate technology startup has launched a new carbon credit methodology to quantify and monetise energy savings from artificial intelligence (AI)-controlled cooling systems, in a move that highlights growing efforts to expand the scope of voluntary carbon markets.
Tokyo-based Linkhola said on 21 April that it had begun operating a methodology under its “Earthstory” platform that allows emissions reductions from AI-optimised air conditioning in buildings to be converted into tradable carbon credits.
The approach targets a longstanding gap in carbon markets, where energy efficiency gains from software-based optimisation — such as AI systems that adjust cooling in real time — have been difficult to standardise and verify under existing schemes.
Buildings account for roughly a third of global energy consumption, according to the International Energy Agency, with heating, ventilation and air conditioning (HVAC) systems representing one of the largest sources of energy use. As demand for cooling rises sharply in Asia due to urbanisation and climate change, technologies that reduce electricity consumption are drawing increasing interest from companies seeking to cut costs and emissions.
Under Linkhola’s methodology, emissions reductions are calculated by comparing electricity use before and after the installation of AI control systems on air conditioning equipment. The framework is designed to be applicable to both new and existing buildings, including offices, factories, retail outlets and medical facilities, and can be used globally.
Linkhola estimates that large office buildings could reduce emissions by around 325 tonnes of carbon dioxide annually, while cutting energy costs by about JPY9 million (US$60,000), based on data from these projects. Larger industrial facilities could achieve more than 1,100 tonnes of emissions reductions per year, it said.
Voluntary carbon markets, which allow companies to offset emissions by purchasing credits from projects that reduce or remove greenhouse gases, have come under increasing scrutiny over concerns about the environmental integrity of some credits. Efforts are under way to strengthen standards and governance, including through industry body Integrity Council for the Voluntary Carbon Market (ICVCM), which has introduced core carbon principles to improve credibility.
Existing frameworks such as those developed by standard-setters Verra and Gold Standard have historically focused on more conventional project types, such as renewable energy and nature-based solutions. Energy efficiency measures — particularly those driven by digital optimisation rather than physical upgrades — have been harder to incorporate due to challenges in establishing reliable baselines and ensuring additionality.
Linkhola said its methodology incorporates digital monitoring, reporting and verification (dMRV) to improve transparency and could be aligned with international standards such as ICVCM’s principles. It added that the framework was designed with international deployment in mind, particularly in Southeast Asia, where demand for energy-efficient cooling is growing rapidly.
Japan has been actively promoting carbon pricing and credit mechanisms as part of its broader decarbonisation strategy, while companies in the country are increasingly investing in digital solutions to improve energy efficiency.
