cap and trade Meaning in the Cambridge English Dictionary Cambridge dictionaries logo
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Meaning of “cap and trade” in the English Dictionary

"cap and trade" in Business English

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cap and tradenoun [U]

uk   us   ENVIRONMENT, SOCIAL RESPONSIBILITY
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
(Definition of cap and trade from the Cambridge Business English Dictionary © Cambridge University Press)
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