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Climate Change
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Cap-and-Trade

Many lawmakers and climate activists have urged governments to enact cap-and-trade policies, limiting industries’ greenhouse gas emissions.

Slides

Cap-and-Trade is a system of government regulations where industries purchase pollution caps that allow them to emit only certain chemicals. Businesses can then trade emission caps to increase the number of emissions they can produce. At its core, cap-and-trade imposes a statewide hard limit on the total amount of emissions and allows businesses to purchase and trade vouchers for emitting pollutants. California famously tried cap-and-trade to reduce pollution in the state.