cap and trade

[ kap uhn treyd ]

noun

1. a system in which organizations and countries are permitted to produce a set amount of carbon dioxide emissions and other atmospheric pollutants, with the provision that those who do not produce their entire allowance may sell their remaining capacity to those who have exceeded their allowed limit (often used attributively):

   a cap-and-trade program.

cap-and-trade

adjective

1. denoting a scheme which allows companies with high greenhouse gas emissions to buy an emission allowance from companies which have fewer emissions, in a bid to reduce the overall impact to the environment

Word History and Origins

Origin of cap and trade¹

First recorded in 1995–2000

Example Sentences

“Gov. Schwarzenegger was right. The proponents of cap and trade were right. The naysayers and the cynics were wrong,” Newsom said.

From Los Angeles Times

The raft of conservative initiatives propose to repeal the landmark Climate Commitment Act and prohibit all future “cap and trade” carbon reduction efforts; repeal the capital gains tax for stock sales of $250,000; repeal the long-term care tax; prohibit a state income tax; loosen police pursuit policies; and change the relationship between schools, kids, and parents.

From Seattle Times

The conservative nonprofit Citizen Action Defense Fund filed a claim Thursday with the state Department of Enterprise Services on behalf of Scott Smith, a former transportation planner, alleging he was forced out of his job for “refusing to violate state law and lie about the cost impacts of the state’s cap and trade program.”

From Seattle Times

House Republicans estimate that the new cap and trade program costs the average Washington family about $500 per year.

From Seattle Times

Hundreds of companies in California already have to disclose their direct emissions through the state’s cap and trade program, said Danny Cullenward, a climate economist and fellow at the University of Pennsylvania’s Kleinman Center for Energy Policy.

From Washington Times