: 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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President Pro Tem Mike McGuire would work to extend cap-and-trade, which is set to expire in 2030 and must be reauthorized by the Legislature. Lia Russell, Sacbee.com, 15 Apr. 2025 In a collective statement Tuesday, Newsom, McGuire and Rivas hailed the cap-and-trade program’s effectiveness in cutting emissions and generating attractive jobs. Sharon Udasin, The Hill, 15 Apr. 2025 The satellites will be funded using $100 million from the state’s cap-and-trade program, according to Newsom. Lia Russell, Sacramento Bee, 21 Mar. 2025 The governor also proposes to shift $32 million in Proposition 4 bond money to pay for clean energy projects previously authorized for financing under the state’s cap-and-trade program. George Skelton, The Mercury News, 13 Mar. 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 24 Apr. 2025.

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