cap and trade

American  

[kap uhn treyd] / ˈkæp ən ˈtreɪd /

noun

1. a system in which organizations and countries are permitted to produce a set amount of carbon dioxide emissions and other atmospheric pollutants, with the provision that those who do not produce their entire allowance may sell their remaining capacity to those who have exceeded their allowed limit (often used attributively).

   a cap-and-trade program.

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cap-and-trade British  

adjective

1. denoting a scheme which allows companies with high greenhouse gas emissions to buy an emission allowance from companies which have fewer emissions, in a bid to reduce the overall impact to the environment

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Etymology

Origin of cap and trade

First recorded in 1995–2000

Example Sentences

“I think wanting to call out California was part of why cap and trade got mentioned.”

From Los Angeles Times

“Gov. Schwarzenegger was right. The proponents of cap and trade were right. The naysayers and the cynics were wrong,” Newsom said.

From Los Angeles Times

The raft of conservative initiatives propose to repeal the landmark Climate Commitment Act and prohibit all future “cap and trade” carbon reduction efforts; repeal the capital gains tax for stock sales of $250,000; repeal the long-term care tax; prohibit a state income tax; loosen police pursuit policies; and change the relationship between schools, kids, and parents.

From Seattle Times

The conservative nonprofit Citizen Action Defense Fund filed a claim Thursday with the state Department of Enterprise Services on behalf of Scott Smith, a former transportation planner, alleging he was forced out of his job for “refusing to violate state law and lie about the cost impacts of the state’s cap and trade program.”

From Seattle Times

House Republicans estimate that the new cap and trade program costs the average Washington family about $500 per year.

From Seattle Times