We propose a real-space renormalization group algorithm for accurately coarse-graining two-dimensional tensor networks. The central innovation of our method lies in utilizing variational boundary tensors as a globally optimized environment for the entire system. Based on this optimized environment, we construct renormalization projectors that significantly enhance accuracy. By leveraging the canonical form of tensors, our algorithm maintains the same computational complexity as the original tensor renormalization group (TRG) method, yet achieves higher accuracy than existing approaches that do not incorporate entanglement filtering. Our work offers a practical pathway for extending TRG methods to higher dimensions while keeping computational costs manageable.

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• Classical statistical mechanics
• Lattice models in statistical physics
• Strongly correlated systems
• Tensor network methods
• Tensor network renormalization