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

And it also neglected to address long-standing issues with California's cap and trade program, according to Ross Brown, author of the report.

From Salon • Jan. 31, 2023

It says the role of cap and trade in achieving the state’s goals will likely diminish.

From Seattle Times • May 10, 2022

For residents living alongside refineries, complex programs such as cap and trade boil down to a single concern: When and how will the quality of our lives improve?

From Los Angeles Times • Mar. 22, 2022

Companies covered by cap and trade collectively emitted less between 2018 and 2020 than they did from 2015 to 2017, air board data shows.

From Seattle Times • Feb. 15, 2022

The Regional Clean Air Incentive Market, or RECLAIM, program mimicked a cap and trade procedure, allowing refineries to pay to pollute.

From Salon • Nov. 14, 2021