The development and advancement of new technologies have been considered for carbon fixation and its effective utilization as being indispensable for the achievement of greenhouse gas emissions reduction targets without adversely impacting economic growth in the world. Among such technologies, the one considered to present the greatest potential in terms of both of feasibility and CO2 reduction, as well as offering a relatively low cost burden, is CO2 capture, usage and geological storage (CCUS). The costs of CO2 recovery present a barrier to carry the CCS and CCUS project. Large-scale project models for carbon sequestration, recovery and underground storage that involve the construction of long-distance pipelines have been either implemented or planned in North America and Australia, etc., but such projects are not well matched to the land conditions of Japan. The development of Japanese-style CO2 sequestration, recovery and underground storage technologies is required that ensures linkage in a compact and high economical way among local area-based CO2 recovery, storage or fixation processes and also energy supply. In this article, the concept“ Low-Carbon Smart Cities” have been proposed with some technical challenges that can be solved by research developments with including environmental monitoring. This concept is targeted for areas with relatively high population density and where land use constraints are in place. By applying the resulting model to the situation in Southeast Asian countries, which have similar land conditions and also possess coal resources, the aim is to combine and integrate the local environment with the provision of carbon-free energy and realize CO2 reduction with greater economic efficiency.