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Oxford Dictionary English

cap and trade

noun
noun
BrE BrE//ˌkæp ən ˈtreɪd//
; NAmE NAmE//ˌkæp ən ˈtreɪd//
[uncountable]
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a system for controlling carbon emissions and other forms of pollution by setting a limit on the amount any business or organization may produce while allowing them to buy extra capacity from other organizations which have not used their full limit Some environmentalists oppose the whole idea of cap and trade. The centrepiece of his energy plan was a cap-and-trade system.
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June 07, 2025

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