cap and trade noun - definition in Business English Dictionary

cap and trade

ˌcap and ˈtrade: listen to British English pronunciation

ˌcap and ˈtrade: listen to American pronunciation

noun [U] ENVIRONMENT, SOCIAL RESPONSIBILITY

Definition

› a system that puts a limit on the amount of pollution companies can produce. Companies can buy and sell rights to put harmful gases into the air, meaning a company that reduces its pollution is financially rewarded:

Cap and trade has been successful in reducing acid rain in the U.S. by more than 30%.

cap and trade program/scheme/system

→ See also emissions trading

(Definition of cap and trade noun from the Cambridge Business English Dictionary © Cambridge University Press)

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