: 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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But several Democratic affordability bills drew GOP opposition, notably the extension of the cap-and-trade program aimed at limiting climate-changing greenhouse gas emissions, which critics said would further raise gas prices. Michael Smolens, San Diego Union-Tribune, 28 Sep. 2025 Ian Choudri California High Speed Rail Authority CEO loses $4 billion after Trump pulls federal funds from the troubled project, but lands $1 billion a year from state lawmakers who extend cap-and-trade program. Bay Area News Group, Mercury News, 21 Sep. 2025 The bill allocates cap-and-trade funds. The Editorial Board, Oc Register, 18 Sep. 2025 The funds will come from the state’s convoluted cap-and-trade program, which makes emitters of greenhouse gases buy pollution credits. Steve Forbes, Forbes.com, 17 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 10 Oct. 2025.

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