Carbon credits are certificates representing the reduction of one ton of greenhouse gas emissions, but their legal definition is still unclear. Most countries have not yet clarified whether carbon credits are assets, which has affected the inflow of funds from banks and investors.

The failure of the UK Law Commission to reach a decision on the legal definition of carbon credits means that the issue will be resolved by the courts for decades to come. The volatility of the carbon credit market is similar to that of Bitcoin, reaching a peak in 2022 and then falling back.

Still, Standard Chartered and other big banks are trying to establish a foothold in the market. Citigroup is also exploring how to use carbon credits to offset emissions.