cap and tradenoun [ U ]
ukusENVIRONMENT, SOCIAL RESPONSIBILITYa 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