Cap & Trade

 

“Cap & Trade” is a government organized plan to control the amount of pollution that goes into the environment by providing economic incentives. The “cap” sets the limit on what can be pumped into the environment (which is supposed to be lowered year by year) and the “Trade” creates a marketplace to help companies innovate in order and meet their cap level. The less companies put into the environment, the less they have to pay, so it’s in their economic best interest to stop polluting. ( Also called: Emissions Trading)