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
Recent Examples on the Web
The project recently secured $1 billion in annual funding from the state’s cap-and-trade program through 2045.
—
Sophie Austin, Fortune, 27 Dec. 2025
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
Carbon pricing works either by requiring an emitter to pay the government a tax per ton of carbon dioxide emitted or by implementing a cap-and-trade system, in which the government sets a cap on aggregate emissions and firms buy and sell carbon allowances to stay under that cap.
—Jessica F. Green, Foreign Affairs, 7 Nov. 2025
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Sophie Austin, Fortune, 27 Dec. 2025
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
Carbon pricing works either by requiring an emitter to pay the government a tax per ton of carbon dioxide emitted or by implementing a cap-and-trade system, in which the government sets a cap on aggregate emissions and firms buy and sell carbon allowances to stay under that cap.
—Jessica F. Green, Foreign Affairs, 7 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 2 Jan. 2026.
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