: 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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California’s relatively high energy prices are driven, in part, by progressive policy preferences, such as the imposition of the nation’s first cap-and-trade program for carbon emissions. Patrick Gleason, Forbes.com, 11 July 2025 When asked for comment, Newsom’s office signaled that any new rebates would be tied to the governor’s push to reauthorize cap-and-trade, the program that sells emissions credits and reinvests the funds in climate projects. David Lightman, Sacbee.com, 8 July 2025 Behind him was former Representative John Boehner, a Republican from Ohio, who ran out the clock by speaking for just under two hours in June 2009 in opposition to the cap-and-trade American Clean Energy and Security Act. Kate Plummer jenna Sundel, MSNBC Newsweek, 3 July 2025 The rail project currently receives 25% of the cap-and-trade proceeds, which is roughly $1 billion annually depending on the year. Trân Nguyễn, Los Angeles Times, 28 June 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 18 Jul. 2025.

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