What is cap-and-trade?

Cap-and-trade is a way to help keep our planet cleaner by controlling how much pollution big companies can make.

Imagine you and your friends are playing a game where each person gets a certain number of tickets, and each ticket lets them throw one ball into a big pile. If someone uses up all their tickets, they can’t throw any more balls. But if they have extra tickets, they can trade them with friends who need more.

That’s like what happens with cap-and-trade. The government sets a limit, or cap, on how much pollution companies can make. Each company gets some permits, which are like their tickets. If they pollute less than allowed, they can sell their extra permits to other companies who need them.

This helps the environment because companies try to save money by using fewer permits, and that means making less pollution. It’s a fun way for everyone to work together to keep the air cleaner!