: 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.
For more than a decade, the Golden State has operated one of the nation’s most important climate policies – its cap-and-trade program. Mindy Lubber, Forbes.com, 31 July 2025 Many governments already are pricing carbon, either with cap-and-trade, or carbon fee and dividend laws. Carl Yaeckel, San Diego Union-Tribune, 31 July 2025 Sacramento quietly authorized billions in spending without going back to voters, expanding project estimates and tapping into cap-and-trade revenues up to $1.25 billion annually. Mike Garcia, Oc Register, 25 July 2025 Alex Jackson, who leads the industry group American Clean Power California, said the state should use money from its cap-and-trade program to lower bills. Calmatters, Mercury News, 16 July 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 20 Aug. 2025.

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