: 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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His plan is light on specifics but includes defending the state’s cap-and-trade program. Sophie Austin, Fortune, 29 Apr. 2026 Roughly half of the money has been given to utilities to minimize cap-and-trade’s impact on consumer costs. Dan Walters, Mercury News, 15 May 2026 Lawmakers voted last year to reauthorize the cap-and-invest program — formerly known as cap-and-trade — through 2045. Los Angeles Times, 13 Mar. 2026 Recent changes to what used to be known as the state’s cap-and-trade program by the California Air Resources Board are behind that funding uncertainty. Stephen Hobbs, Sacbee.com, 11 June 2026 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 8 Jul. 2026.

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