Meaning of cap and trade | Babel Free

Definitions

A market-based approach to control pollution by providing economic incentives for achieving reductions in emissions, participating companies being assigned an emissions quota that can be traded with others if not used.

uncountable

Equivalents

Examples

“China is implementing a cap and trade system in five cities (Beijing, Tianjin, Shanghai, Chongqing, and Shenzhen) and two provinces (Guangdong and Hubei). These pilots are intended to be up and running in 2013 in order to provide a learning experience that will be used to implement a nationwide cap and trade system by 2015.”

CEFR level