US airline representative group A4A has abandoned its private lawsuit against the European emissions-trading scheme, but remains strongly opposed to the initiative.
It dropped its legal action following a build-up of more powerful opposition to the Emissions Trading System from non-European governments, including the Obama administration.
"Our legal action was critical in bringing to light that the ETS violates international law and is an exorbitant money-grab," says A4A chief Nicholas Calio.
He says there is a "clear path" for US measures to "force" the European Union to suspend the ETS, and that the US position is reinforced by the strength of opposition from other governments.
A4A has "appropriately ended" its own private lawsuit but insists it remains "steadfastly opposed" to the scheme's application to US carriers.
It maintains that ICAO would be its preferred forum through which to develop a global solution to the issue.