30 July 2024 • 8 minute read

Enhancing the regulatory environment and sustainable practices for space

Part three

Written by:Naomi Pryde Christian KeoghSam Ingleton

The final part of our three-part series article addresses the UK's regulatory environment and sustainable practices for space.

The regulatory environment – UK domestic

The UK has stated ambitions to be a global leader in the space sector. Driven by continued innovation and emerging technologies, the UK’s already well-established space sector is continuing to grow, with an increasing number of active industry participants. According to the According to the “Size & Health of the UK Space Industry 2022” GOV.UK report, almost 48,800 people are employed in the UK space industry, with more than 126,800 more jobs across the wider supply chain. There are 1,590 space-related organisations operating in the sector. By estimations of the Bayes Centre News, the space sector could be worth GBP4 billion to Scotland by 2030, with Edinburgh aiming to become the Space Data Capital of Europe in the same timeframe.

In order to support that growth, the UK Government has played an active role in the development of a regulatory framework, which has as its objective the support of safe, sustainable activities, driving research innovation and entrepreneurship in the UK space sector.

The Outer Space Act 1986

The Outer Space Act 1986 (OSA) regulates the launch, procurement, and operation of objects in outer space, and any activity in outer space, where those activities are conducted outside the UK (the Space Industry Act 2018, discussed below, now governs activities conducted from the UK). The provisions are applicable to United Kingdom Nationals, Scottish firms, and any bodies incorporated under the law of any part of the United Kingdom. The text of the OSA is closely modelled to the language of the Outer Space Treaty. Particularly, it specifies that anyone who launches (or procures the launch of) a space object, operates a space object, or carries out any activity in space, must obtain a license before doing so.

In 2015, Section 12 of the Deregulation Act amended the OSA, to protect the government from liabilities incurred by private actors. It set out that licenses must specify the licensee’s liability to indemnify the government regarding any space activities authorised by the license. This allows damages caused by private actors (to whom the liability would fall on the UK government, as the “Launching State” under the Outer Space Treaty) can be recovered by the indemnity mechanism from the private actor who was practically responsible for the damage.

The Space Industry Act 2018

The Space Industry Act 2018 (SIA) (and associated further regulation) is now the main regulation applicable to any space activity, sub-orbital activity (together, referred to as spaceflight activities), and associated activities, which are undertaken from the UK, by UK and non-UK persons. The regulated activities included:

Launch (space or sub-orbital) and return;
The procurement of a UK launch (space or sub-orbital);
The operation of a satellite in orbit;
The operation of a spaceport; and
The provision of range control services.

The subsection applies in particular to “rockets or other craft that are capable of operating above the stratosphere”, and “balloons that are capable of reaching the stratosphere carrying crew or passengers”.

Like the OSA, the SIA contains provisions in respect of indemnity requirements and limits, as well as expanding on the OSA insurance requirements at section 38. EUR60 million of insurance coverage will be required when procuring a launch outside of the UK. The SIA set out the “Modelled Insurance Requirement”;, which is used to calculate insurance requirements and limits of launch operator liability.

The Space Industry (Indemnities) Bill

The Space Industry (Indemnities) Bill (SIIB) amends the SIA “to require that spaceflight operator licenses must specify a limit on the amount of the licensee’s liability to indemnify the United Kingdom Government and other particular persons or bodies against any claims brought against the government, or the person or body, in respect of damage or loss arising out of or in connection with spaceflight activities authorised by the license”.

The SIIB requires operator licenses to specify the licensee’s indemnity limit. Avoiding the possibility of uncapped indemnities, as well as limiting the amount of insurance that they are required to hold, the government hope that this will reduce barriers to entry to the industry. These barriers were identified as a concern to be addressed in a 2020/21 consultation on spaceflight liability, insurance, consultation, and charging.

The liability limit actually imposed on an operator will be determined by an operator’s implementation of measures against several specific criterion areas including mission specific details (reflecting the actual risk of a mission) and space sustainability policy (incentivise adoption of more sustainable practices by operators).

SIA and OSA License Fees

The Civil Aviation Authority retains responsibility for the charging for licenses issued to operators under the SIA. The current fee for a single orbital application is GBP6,500.

Separately, the UK Space Agency is responsible for the charging of fees for licenses issued jointly under the OSA and the SIA. These are known as “bundled licenses”. They refer to the OSA to authorise the procurement of an overseas launch by a UK national, and refer to the SIA to authorise the operation of a satellite from the UK. The bundled license is also subject to a single fee of GBP6,500. Exemptions are provided for recognised educational institutions carrying out space activity for scientific research.

Concluding thoughts on the UK regulatory environment

The work already done has unified national interests behind common and positive causes. The UK, falling in line with those requirements and principles, has established itself as a responsible and proactive member of the wider international community. The UK framework handles both the principled international ambitions for humankind’s occupation of space, as well as facilitating the activities of private actors, while maintaining clear government oversight and accountability.

The final section of this article on “sustainable practice” will apply the facts of the existing legal framework (both international and domestic) to the requirement for sustainable, cooperative, and peaceful practice in space. It will also address the UK’s Terra Carta and Astra Carta frameworks, and explain their provenance and role.

Sustainable practice – UK domestic:

Environmental law in space, much like terrestrial environmental law, serves a twin purpose: ensuring safety for operating bodies, and preserving the natural world to the greatest extent possible for future generations. Ongoing spacefaring commercial operations, as they increase in volume and complexity, represent a risk to the safety and cleanliness of outer space. Our law should seek to mitigate any of the negative externalities of space travel and exploration, on both a national and international basis. The remainder of this article will consider the UK’s domestic Terra Carta and Astra Carta charters, as an indication of the proposed solutions to adverse environmental impacts of spacefaring activities.

Terra Carta/Astra Carta

The Terra Carta is a prior document to the Astra Carta. It is a mission statement under the Sustainable Markets Initiative, which pledged to put “Nature, People, and Planet at the heart of global value creation”. The Terra Carta is a charter document, which acts to provide a framework for private sector participants seeking to accelerate their progress towards a sustainable future. The Terra Carta Seal can be awarded in recognition of global companies which are leading in sustainability practices.

Building on the Terra Carta, the Astra Carta seal can be awarded for sustainable practices for global space-related industries. It was unveiled at the 2022 Space Sustainability Summit, and launched in June 2023. The Summarium of the Astra Carta sets out a statement of intent, as well as a set of targets for “The Supporters of the Astra Carta”. The document is very similar in its intention to the OSA, in many ways. Where the OSA was drafted to reflect global interests at the end of the Cold War, the Astra Carta is a clear statement of intent in a new environment, where the future use of space seems to be predominantly commercial, rather than military. Further, as the planet now focuses on a sustainable future, the Astra Carta represents a fairly clear starting point for progress, both within the UK, and overseas.

Both documents acknowledge the importance of bringing private sector industry participants on-side in the campaign for environmental sustainability. Through a state-supported, public-facing exercise in environmental accountability, both the Terra Carta and the Astra Carta allow private actors to elevate themselves above their peers, with certified good environmental practices. These charters demonstrate that it is not only a system of international laws which ensure good practice in space, but that industry participants have a genuine interest in the development and protection of their good reputation, whilst the industry is in its nascent stages.

Enhancing the regulatory environment and sustainable practices for space

The regulatory environment – UK domestic

Sustainable practice – UK domestic:

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