Cap and trade

{
  "id": "MLC-T-LAW-000844",
  "term": "Cap and trade",
  "field": "Law",
  "definition": "A regulatory program designed to reduce certain pollutants by setting an overall limit on emissions and allowing entities to buy and sell allowances to emit. The total number of allowances is capped, and this cap is typically lowered over time to achieve emission reduction targets. This system creates a market for emission allowances, providing economic incentives for polluters to reduce their output.",
  "synonyms": [
    "cap-and-trade"
  ],
  "url": "https://mlchart.com/terminology/law/cap-and-trade/"
}