: 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 measure renames the cap-and-trade program cap-and-invest and extends it 15 years from 2030, the current expiration date, coinciding with the state’s declared intention to make California carbon neutral by 2045. Dan Walters, Mercury News, 18 Mar. 2026 But both federal and private sector money are now nowhere to be seen, and cap-and-trade revenue is inherently speculative. Jon Coupal, Oc Register, 15 Mar. 2026 Lawmakers voted last year to reauthorize the cap-and-invest program — formerly known as cap-and-trade — through 2045. Los Angeles Times, 13 Mar. 2026 On top of that, California requires a special fuel blend that adds another 15 cents per gallon, the state’s cap-and-trade program costs another 26 cents and a special sales tax for gas contributes another 10 cents, according to the California Energy Commission. Adam Summers, San Diego Union-Tribune, 23 Jan. 2026 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 24 Mar. 2026.

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