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).
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
cap and trade
American
[kapuhn treyd]/ ˈkæp ən ˈtreɪd /
noun
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.
cap-and-trade
British
adjective
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
The state and the harshest critics of cap and trade agree that more needs to be done to narrow the gap between communities like Wilmington and those with cleaner air.
The state is required to reduce emissions 40% below 1990 levels by 2030, an ambitious target, and the state has previously said more than a third of those reductions will come from cap and trade.
