"The new CO2 air conditioner will not only protect the environment but also strengthen global competitiveness," Satoshi Watanabe, managing director for the firm's thermal system group, said in a statement.
Denso is already the top maker of automotive air conditioners in the world.
Most air cons use hydroflurocarbon refrigerant that is harmless to the ozone layer but still impacts on global warming.
But the effect on global warming of Denso's new non-flurocarbon air conditioner is 1/1,300 of the normal kind.
The enviornmentally-friendly contraptions were installed in a handful of commercial fuel-cell cars launched at the start of the week by Toyota.
Denso, 24.5 percent owned by Toyota, aims to increase the range of vehicles fitted with its new air conditioners.
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