In view of its dexterity and .exibility in synthesizing elements of the existing 1952 Rome Convention, its 1978 Protocol and the Montreal Convention of 1999, while adding on new provisions and approaches to liability for damage, a new revised Convention on damage caused to persons and property by foreign aircraft bears promise in providing the much needed balance between economic theory and social justice as well as interests of the public and those of the air transport industry. The advantages offered by an international and globally applicable instrument are clearly evident, particularly in the context of new and emergent threats arising from nuclear devices and chemical and biological weapons, as well as conventionally used terrorist tools, as such would provide an umbrella of regulation particularly to States which are inadequately legislated and carriers who might be under-insured and destitute of liquid assets. A back to back regime provided by the Montreal Convention and the new Convention could supplement each other well in providing coverage in instances of passenger and third party liability, while at the same time looking after the interests of the carrier.
207Market based measures are targeted through voluntary measures and emissions trading. With regard to the former, ICAO has developed a Template Agreement – Memorandum of Understand-ing that States and other parties concerned could use as a basis for voluntary measures. On emissions trading, the Assembly endorsed the further development of an open emissions trading system for international aviation.
208See the following working papers for background information: A35-WP/56: Civil Aviation and the Environment (which provides an overview); A35-WP/76: Market-based Measures regarding Aircraft Engine Emissions; A35-WP/77: Updating of Resolution A33-7; and A35-WP/352: Report on Item 15 for some details relating to the outcome of Assembly.
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