: 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.
Funding the high-speed rail project On the final day of sessions, legislators agreed to allocate $1 billion each year from the state’s cap-and-trade program to fund the high-speed rail project. Kaitlyn Schallhorn, Oc Register, 16 Sep. 2025 The Legislature did extend the state’s cap-and-trade greenhouse gas auction system, which generates money that is used to fund affordable housing, along with other programs. Stephen Hobbs, Sacbee.com, 15 Sep. 2025 California's high-speed rail project has won a financial lifeline, with the state committing $1 billion annually from cap-and-trade revenues through 2045. Theo Burman, MSNBC Newsweek, 11 Sep. 2025 But with ridership still far lower than pre-pandemic levels, Bay Area transit agencies want to use cap-and-trade dollars to pay for more of their operating funds, too. Kate Talerico, Mercury News, 9 Sep. 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 Sep. 2025.

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