: 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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
What To Know State lawmakers urged the legislature to reserve $1 billion a year from cap-and-trade auction proceeds to support the high-speed rail program, a policy change advocates said would provide predictable financing through 2045. Theo Burman, MSNBC Newsweek, 26 Aug. 2025 The grant is part of California Climate Investments, a statewide initiative that aims to use cap-and-trade dollars from polluters to benefit the environment, economy and public health. David Garrick, San Diego Union-Tribune, 18 Aug. 2025 Then there’s also the battle over reauthorizing California’s cap-and-trade program, an emissions trading system meant to help the state reach its ambitious climate goals. Kaitlyn Schallhorn, Oc Register, 18 Aug. 2025 So far, the project has been funded largely through California’s cap-and-trade program, which auctions a limited number of emission permits to companies. Tina Li, Sacbee.com, 14 Aug. 2025 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

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Cite this Entry

“Cap-and-trade.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cap-and-trade. Accessed 8 Sep. 2025.

Last Updated: - Updated example sentences
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