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The Stratospheric Particle Injection for Climate Engineering (Spice) project would have pumped water droplets into the atmosphere from a tethered balloon.
The kit could then have been used to disperse tiny dust particles to cool the Earth, as volcanic eruptions do.
The Spice chiefs cite problems with regulations, intellectual property and public engagement.
Core to the decision was a patent application filed by two Cambridge University researchers, Hugh Hunt and Chris Burgoyne, and Isle of Man-based businessman Peter Davidson, that covered much of the project's technology.