Meaning of the word "cap and trade" in English
What does "cap and trade" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.
cap and trade
US /kæp ænd treɪd/
UK /kæp ænd treɪd/
Noun
a system for controlling carbon emissions and other forms of atmospheric pollution by which an upper limit is set on the amount a given business or other organization may produce but which allows further capacity to be bought from other organizations that have not used their full allowance
Example:
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The government introduced a cap and trade system to reduce industrial greenhouse gas emissions.
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Critics argue that cap and trade policies can lead to higher energy costs for consumers.
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