Background: a fragmented legal landscape in orbit

Space activities in the European Union are expanding rapidly. The Commission points out that the cost of launching and manufacturing satellites is decreasing, while the demand for space-based services is increasing. This has led to the emergence of new private actors, particularly small and medium-sized enterprises as well as start-ups, across multiple Member States

Currently, thirteen Member States (Austria, Belgium, Denmark, Finland, France, Greece, Italy, Luxembourg, Netherlands, Portugal, Slovakia, Slovenia and Sweden) have adopted national space laws, while others are drafting theirs. This trend has led to a fragmentation of the internal market, with diverging rules on authorisation, safety, resilience, and environmental impact of space activities.

According to the Commission’s Explanatory Memorandum, attached to the Proposal for the EU Space Act, this patchwork of legislation:

  • creates barriers to cross-border operations and hinders legal certainty;
  • undermines the Union’s objective of an open, integrated space services market; and
  • disincentivises investment in the Union space sector due to compliance complexity.

The EU Space Act is intended to address these issues by introducing harmonised rules that ensure a level playing field for space operators, while enhancing the Union’s strategic autonomy and reinforcing its position as a global standard setter in the space domain.

Objectives: strategic autonomy, safety, resilience and sustainability

Four key objectives drive the EU Space Act’s regulatory framework:

  • support the internal market by creating a stable, predictable and competitive environment for Union space operators;
  • enhance safety by requiring launch and operational safeguards that reduce collision risks and space debris;
  • ensure resilience by tailoring cybersecurity and risk management rules to the space sector; and
  • advance sustainability by mandating environmental footprint assessments based on space-specific lifecycle methodologies.

Such an approach will ensure alignment with other priorities of the Union, including the Directive 2022/2555 on measures for a high common level of cybersecurity across the Union, also known as NIS2 Directive, and the European Green Deal.

Scope: who will be affected?

The Proposal casts a wide net across the space value chain, as it will apply to:

  • Union space operators, meaning public or private entities established in, or controlled from within, a Member State, which carry out spacecraft operations, launch operations, operations of ground launch infrastructure, or the provision of in-space operations and services;
  • third-country operators providing space-based data or services in the Union;
  • primary data providers, acting as intermediaries between space operators and downstream users; and
  • international organisations, such as the European Space Agency (ESA) or the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT).

Key provisions: what does the Proposal actually require?

The EU Space Act introduces a wide range of obligations. While this article does not aim to provide an exhaustive overview – which would require tailored legal advice –, it highlights some of the most significant requirements space operators should be aware of, such as:

  • operators will need to obtain authorisations from competent authorities designated by the relevant Member States or, in the case of Union-owned assets, from the Commission;
  • all authorised operators will be recorded in the Union Register of Space Objects (URSO);
  • authorisations issued in one Member State shall be recognised by others;
  • operators subject to the NIS2 Directive will have to comply with the space-specific cybersecurity requirements set out in the EU Space Act, which apply as a lex specialis and take precedence over overlapping NIS2 obligations;
  • operators will be required to assess and declare the environmental footprint of their missions, using a space-specific life-cycle methodology, unless exempted under the EU Space Act;
  • third-country operators will be subject to the appointment of at least one legal representative in the Union and undergo compliance checks, except in cases where a derogation has been granted by the Commission; and

It is also noteworthy that non-compliance with the Regulation may trigger enforcement measures, including administrative fines and periodic penalty payments.

Institutional support: what is the role of the EUSPA?

The European Union Agency for the Space Programme (referred to, in the Proposal, as both the EUSPA or the Agency) will play a central role in supporting implementation of the Regulation. It will be responsible, inter alia, for registering space operators in the URSO, issuing e-certificates of compliance, managing operational databases, and conducting technical assessments where mandated by the EU Space Act.

Timeline: when will it apply?

The Proposal is currently undergoing the ordinary legislative procedure.

The Regulation is intended to apply from 1 January 2030, but only to assets launched after that date. For authorisations concerning assets planned to be launched after 1 January 2030, a transitional period will be granted.

Next steps: what should businesses do now?

Although the Regulation will not be applicable until 2030, legal and compliance teams should already begin preparing. Preparatory steps include:

  • conduct an internal review of current and upcoming space operations and services to determine how they will align with the technical rules in order to obtain registration with the URSO;
  • be equipped for the preparation of lifecycle-based environmental impact assessment obligations (i.e., the environmental footprint);
  • update internal policies to meet the risk management obligations under the EU Space Act, in addition to those already required under the NIS2 Directive; and
  • third-country operators based outside the Union should already designate a legal representative within the Union.

Conclusion

The EU Space Act is the first serious attempt to harmonise space law within the Union. It reflects the increasing importance of the space sector, not only for innovation and connectivity, but also for strategic autonomy and resilience. While full application is several years away, the message is clear: businesses operating in or with the European Union space ecosystem should begin preparing for a more integrated and regulated framework.

Click here to read the full Proposal for a Regulation on the safety, resilience and sustainability of space activities in the Union.