cap and trade

noun

A market-based approach to control pollution by providing economic incentives for achieving reductions in emissions, participating companies being assigned an emissions quota that can be traded with others if not used.

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Meanings

nouncap and trade (uncountable)
  1. uncountableA market-based approach to control pollution by providing economic incentives for achieving reductions in emissions, participating companies being assigned an emissions quota that can be traded with others if not used.
    1 more example

    China is implementing a cap and trade system in five cities (Beijing, Tianjin, Shanghai, Chongqing, and Shenzhen) and two provinces (Guangdong and Hubei). These pilots are intended to be up and running in 2013 in order to provide a learning experience that will be used to implement a nationwide cap and trade system by 2015.

    2013, Al Gore, “The Edge”, in The Future: Six Drivers of Global Change, New York: Random House, →ISBN, →LCCN, →OCLC, page 348

Translations

French bourse du carbone
  • bourse du carbonemarket-based approach to control pollution
Cite this entry
APA

cap and trade. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/cap%20and%20trade

MLA

“cap and trade.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/cap%20and%20trade. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “cap and trade,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/cap%20and%20trade.

Source: cap and trade on Wiktionary, CC BY-SA 4.0.