# cap and trade

> English word · Noun

## Definitions
1. 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.

## Source
Compiled from Wiktionary via kaikki.org (CC BY-SA). Data vintage: 2026-05-06.
Canonical page: https://plainspell.com/en/word/cap-and-trade