: 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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The state is likely to continue being the project’s primary sponsor, as Gov. Gavin Newsom proposed in his May budget revision that $1 billion per year for the high-speed rail through 2045 come from California’s cap-and-trade program. David Lightman, Sacbee.com, 4 June 2025 That thinking was a key part in developing the country’s cap-and-trade system, which was enacted last year and is in the process of being implemented. Justin Worland, Time, 23 May 2025 President Trump has made specific threats to California’s environmental efforts, including its vehicle emission standards and cap-and-trade program. Hayley Smith, Los Angeles Times, 18 May 2025 Among other things, the report confirms that California motorists are already paying quite a bit more for fuel because of cap-and-trade. Dan Walters, Mercury News, 11 May 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 Jun. 2025.

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