cap and trade

Definition of "cap and trade"
  1. A policy curbing pollution where companies earn permits for each ton of carbon dioxide emitted and can swap extra permits with firms exceeding their emission limits
How to use "cap and trade" in a sentence
  1. The paper mill engaged in a cap and trade and sold permits to the coal company.
  2. Under the cap and trade scheme, we obtained extra permits from a clean energy company.
  3. The cap and trade policy prompted our corporation to lower carbon emissions, letting us sell spare permits.

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