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.
When California introduced its cap-and-trade system and a carbon border fee on imported electricity, generators in neighboring states rerouted low-carbon electricity to California while sending carbon-intensive electricity elsewhere.
Lawmakers also voted to extend cap-and-trade, an ambitious climate program that sets limits on greenhouse gas emissions and allows large polluters to buy and sell unused emission allowances at quarterly auctions.
L.A.-area lawmakers recently requested an annual $3.3-billion investment in transit from the state’s cap-and-trade fund, acknowledging that although high-speed rail is a state priority, L.A.
