cap-and-trade
adjective
: 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
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The proposal also lays out how to spend money from California’s signature cap-and-trade program, which sets limits on greenhouse gas emissions and allows large polluters to buy and sell unused emission allowances at quarterly auctions.
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Los Angeles Times, 10 Jan. 2026
The money comes from revenues generated by the state’s cap-and-trade program and an air pollution regulation fund.
—Linh Tat, Daily News, 9 Jan. 2026
Yet the project is dependent now on taxpayer subsidies, with the Legislature last year guaranteeing $1 billion in annual funding from the cap-and-trade system for the next 20 years.
—The Editorial Board, Oc Register, 23 Dec. 2025
During his term, the state has solidified its cap-and-trade regime, crafted new climate disclosure rules, and, in an about face, supported a continuation of nuclear power.
—Justin Worland, Time, 14 Nov. 2025
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Los Angeles Times, 10 Jan. 2026
The money comes from revenues generated by the state’s cap-and-trade program and an air pollution regulation fund.
—Linh Tat, Daily News, 9 Jan. 2026
Yet the project is dependent now on taxpayer subsidies, with the Legislature last year guaranteeing $1 billion in annual funding from the cap-and-trade system for the next 20 years.
—The Editorial Board, Oc Register, 23 Dec. 2025
During his term, the state has solidified its cap-and-trade regime, crafted new climate disclosure rules, and, in an about face, supported a continuation of nuclear power.
—Justin Worland, Time, 14 Nov. 2025
See All Example Sentences for 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 20 Jan. 2026.
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