: relating to or being a system that caps the amount of carbon emissions a given company may produce but allows it to buy rights to produce additional emissions from a company that does not use the equivalent amount of its own allowance

Examples of cap-and-trade in a Sentence

Recent Examples on the Web
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The governor has not quantified the amount of funding the state would make available for rebates and said the money would come from the cap-and-trade program, the state’s market for pollution credits to reduce greenhouse gas emissions. Taryn Luna, Los Angeles Times, 11 Dec. 2024 California provided up to $7,500 for the purchase or lease of a new plug-in hybrid, battery or fuel cell EV and could potentially be paid for by the Greenhouse Gas Reduction Fund which is funded by polluters under the state's cap-and-trade program. David Shepardson and Akash Sriram, USA TODAY, 27 Nov. 2024 The funding for the new rebates could come from California's Greenhouse Gas Reduction Fund, a revenue stream supported by the state's cap-and-trade system. Tom Rogers, Newsweek, 26 Nov. 2024 The governor proposed funding the new rebates from the state’s cap-and-trade program, which industrial polluters are required to pay into under state law. Ella Nilsen, CNN, 25 Nov. 2024 See all Example Sentences for cap-and-trade 

Word History

First Known Use

1995, in the meaning defined above

Time Traveler
The first known use of cap-and-trade was in 1995

Dictionary Entries Near cap-and-trade

Cite this Entry

“Cap-and-trade.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cap-and-trade. Accessed 21 Dec. 2024.

Last Updated: - Updated example sentences
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