A cap and trade system: 1. was used in nineteenth-century England to limit coal consumption. 2. encourages fair trade by limiting the amount of many vegetables that can be imported from Mexico. 3. reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases. 4. exempts Chinese imports from Food and Drug Administration regulations.

3. Reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.

Explanation:

The Cap and Trade system is a policy that seeks to reduce the emission of gases to the environment to the barest minimum.

There is a standard or cap which companies are expected to adhere to. Noncompliance to these standards attracts fines. It is a measure that seeks to combat global warming.

Trading ensures that companies who are able to cut down on their emissions can have extra allowances or revenue which can be sold to other companies.

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