U.S. airlines drop lawsuit against EU carbon emissions law

Carriers say the law is an “exorbitant money grab,” ask the U.S. government to carry the flag instead

A group of U.S. airlines have dropped their private lawsuit against the European Union Emissions Trading System (EU ETS), which implemented a law on Jan. 1 that taxes airlines for carbon emissions on trans-Atlantic flights.

The suit, brought by American Airlines Inc., United Continental Holdings Inc. and industry trade organization Airlines for America (A4A), echoed a chorus of critics clamoring against the EU ETS and its “cap and trade” principle. The EU ETS’ principle limits the total amount of certain greenhouse gas emissions, and offers parties contributing to gas emissions the ability to buy or sell emission allowances from one another as needed. The EU Commission levies heavy fines against parties that don’t have enough allowances to cover their emissions at the end of the year.

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