This article provides an outlook of the anticipated EU Space Act, delving into its origins, objectives, and the potential measures under its three core pillars: safety, security, and sustainability. 

The EU Space Act is expected to impact space tech companies both within and outside the European Union. The formal proposal for the EU Space Act is expected in Q2/2025, likely taking the form of a regulation, as opposed to a directive. This would result in the EU Space Act being directly applicable across all EU Member States.

Absent any legislative draft, this article is a mere reflection of preliminary documents, results based on consultations, and expectations among scholars and publicly available sources.

1 | Introduction

Space, once the exclusive domain of superpowers, is undergoing a profound transformation. The last decade has witnessed an unprecedented surge in space activities, driven by technological advancements, reduced launch costs, and the burgeoning commercial space sector, often named New Space. Low Earth Orbit (LEO), in particular, is becoming increasingly crowded with satellite constellations designed for communication, Earth observation, and navigation, including the EU's own plan for the IRIS² constellation. This proliferation, adding to the over 60,000 space objects and estimated one million pieces of smaller debris already orbiting our planet, creates a congested environment where the risks of collision and interference are escalating dramatically. 

Space technology is inherently dual-use. It serves as a critical enabler for economic growth, scientific discovery, and essential societal services, including navigation (Galileo, EGNOS), Earth observation (Copernicus), secure communications (Govsatcom, IRIS²), and climate monitoring. This reliance makes space an increasingly contested geopolitical domain, where national security interests intersect with commercial ambitions, and the potential for conflict or disruption is high. Governing such a complex domain is a challenge which requires fostering innovation and commercial enterprise while ensuring operational safety, protecting critical infrastructure, guaranteeing national security, and preserving the long-term environmental sustainability of outer space for future generations.

In view of that, the EU will introduce the EU Space Act, previously referred to as the EU Space Law. Its core purpose is to establish a common, harmonized set of EU-wide rules addressing three core objectives: (i) the safety of space operations, (ii) the security and resilience of space systems and infrastructure, and (iii) the long-term sustainability of space activities, all of which will be discussed in section 3 after looking at the foundations of the EU Space Act.

2 | The Genesis of the EU Space Act

The EU Space Act has not been developed in a vacuum. It is based on several policy initiatives, driven by strategic objectives, and reflects the EU's growing role and ambitions as a major space power.

2.1 Policy Foundations

Two key policy documents serve as the immediate precursors and drivers for the EU Space Act: First, the Joint Communication on an EU Approach for Space Traffic Management (February 2022) highlighted the critical importance of STM for ensuring the safety, security, and sustainability of space activities, calling for the development of both non-binding measures and binding obligations. Second, the Joint Communication on the EU Space Strategy for Security and Defence (March 2023), included the EU's first dedicated security and defense strategy for the space sector. Recognizing space as a strategic domain crucial for security and defense, the Space Strategy for Security and Defence called for the European Commission to propose an EU Space Law to provide a common framework for security, safety, and sustainability across the Union.

These policy developments are underpinned by the EU's substantial investments and operational responsibilities in space through the EU Space Programme, managed by the European Union Agency for the Space Programme (EUSPA). Flagship constellations like the Galileo navigation system and the Copernicus Earth observation program, along with the upcoming IRIS² secure connectivity constellation, represent significant European assets in orbit, giving the EU a strong interest in establishing rules to protect these investments and ensure the long-term viability of space.

2.2 Objectives

The upcoming EU Space Act is driven by a confluence of interconnected objectives:

  • Harmonization: A primary goal is to eliminate the fragmentation that currently exists within the EU. Presently, at least eleven Member States possess their own national space laws, with others potentially developing them. This mosaic of national regulations creates complexity, potential barriers within the European single market, and inconsistencies in approach. The EU Space Act aims at replacing this patchwork with a coherent EU-wide framework. This drive for harmonization reflects a view that the current fragmentation hinders the EU's ability to act cohesively and effectively in the space domain, potentially placing it at a competitive disadvantage compared to more unified space powers.
  • Competitiveness: By establishing clear, predictable, and uniform rules across the European single market, the EU intends to enhance legal certainty for space tech companies. This predictability, combined with potentially high standards for safety, security, and sustainability, is envisioned as a competitive advantage, offering a seal of confidence to partners and customers. 
  • Safety, Security, and Sustainability: These three pillars form the substantive core of the proposed EU Space Act. The EU Space Act will likely mandate measures to improve space traffic safety, enhance the security and resilience of space infrastructure against cyber and physical threats, and promote long-term environmental sustainability of space activities.
  • Autonomy: Overarching these objectives is the EU's pursuit of strategic autonomy in space. This concept involves the EU's ability to set its own priorities, protect its interests and investments, and act independently in the strategic domain space. A key component of this autonomy is the capacity to shape the international regulatory environment – influencing the development of international law, rules, and regulations, as well as other norms and standards, so they align with EU interests and values. By establishing a comprehensive framework and potentially setting high standards and global precedents, The EU Space Act could be a critical tool in achieving this strategic goal. 

2.3 Territorial Scope

The scope of the EU Space Act is expected to be broad. Statements from commentators as well as the desire for competitiveness and autonomy suggest that the EU Space Act will apply not only to EU-based operators but to any space system operating within the EU or providing services in the EU market, irrespective of the operator's origin. This extraterritorial reach, which is known from the EU's General Data Protection Regulation (GDPR), is a deliberate strategy. It aims to ensure a level playing field, preventing non-EU companies from gaining a competitive advantage by operating under potentially less stringent standards while accessing the EU market. It also maximizes the EU Space Act's global impact by compelling international actors engaging with the EU market to adhere to its standards. It remains to be seen whether the first and final drafts of the EU Space Act will follow this bold path.

3 | Three Core Objectives: Safety, Security, Sustainability

3.1 Safety

The safety pillar of the EU Space Act is expected to address the mounting risks associated with increased orbital congestion and space debris, primarily through enhanced Space Traffic Management (STM) and stricter debris mitigation requirements.

Based on the foundational policy documents, particularly the EU Approach for STM (2022), the safety pillar is likely to encompass several key areas:

  • Space Traffic Management: STM can be understood as the collective means and rules necessary to conduct activities in and return from outer space in a safe, secure and responsible manner. The EU Space Act may introduce standardized EU criteria for licensing crucial phases of space operations: launch, in-orbit collision avoidance, and atmospheric re-entry. This aims to create a more predictable and coordinated operational environment in space.
  • Collision Avoidance: To tackle the immediate threat of in-orbit collisions, the EU Space Act may impose binding measures, which could include mandating the use of active tracking devices on satellites to improve visibility, establishing systemized notifications and warnings for major incidents (like break-ups) and high-risk re-entries, and requiring commercial satellite operators to subscribe to a collision avoidance service meeting minimum performance level. The latter could potentially be benchmarked against the existing EU Space Surveillance and Tracking (SST), which is part of the Space Situational Awareness (SSA) component of the EU Space Programme. Providers of such collision avoidance services might also face requirements, such as maintaining robust communication mechanisms and operator directories for managing conjunction events. Compliance with specific technical standards, potentially developed by European standardization bodies and covering scenarios like non-maneuverable satellites, could also be mandated. 
  • Debris Mitigation: Addressing the long-term threat of space debris is another cornerstone of the safety pillar, to ultimately avoid the Kessler effect. The EU Space Act is expected to introduce mandatory minimum deorbiting standards. Key measures include limiting the generation of debris during normal operations, minimizing the potential for accidental break-ups (e.g., through passivation – the depletion of all on-board stored energy sources like residual fuel or batteries at end-of-life), and ensuring the timely removal of spacecraft and launch vehicle stages from operationally critical regions after their mission ends. Specifically, this may translate to requiring objects passing through LEO to be removed within 25 years of mission completion (preferably via controlled re-entry, or disposal into orbits ensuring decay within that time frame) and moving GEO satellites to graveyard orbits sufficiently above the operational region. The EU Space Act may also reinforce the avoidance of intentional destruction of satellites or other activities that generate long-lived debris. While obligations to remove existing debris (natural debris and debris of unknown origin) does not seem to be on the agenda, it remains to be seen whether and how the EU lawmakers will deal with this additional challenge.

3.2 Security

The second pillar of the EU Space Act focuses on bolstering the security and resilience of space systems and services, reflecting the growing recognition of space as a critical infrastructure domain susceptible to a range of threats, including cyberattacks and potentially hostile actions.

Drawing from the EU Space Strategy for Security and Defence and related policy communications, the security pillar is expected to introduce requirements aimed at protecting both ground segments and space assets:

  • Cybersecurity: Given the increasing reliance on digital systems, cybersecurity is a major focus. The EU Space Act may mandate specific cybersecurity standards and procedures tailored to the space domain. This could involve requirements for hardening systems and components across the entire supply chain against cyber threats, as well as obligations for continuous monitoring, assessment, reporting, and sharing of information on cyber incidents. While existing EU-wide legislation like the NIS 2 Directive on security of network and information systems and the CER Directive on the resilience of critical entities already cover some aspects of ground-based space infrastructure operators, the EU Space Act is expected to address the unique vulnerabilities and challenges inherent in the orbital environment and in-space operations. Extending mandatory cybersecurity standards across the entire supply chain could represent a significant shift, potentially imposing new compliance obligations on component manufacturers, software developers, and integrators, in the EU and perhaps worldwide, whose products are used in systems serving the EU market. This reflects a broader EU focus on securing critical supply chains but could create substantial hurdles, particularly for non-EU suppliers.
  • Information Sharing: To foster a common understanding of threats and enable coordinated responses, the EU Space Act may introduce binding information-sharing measures. This could include mandatory reporting of system anomalies or security incidents that might indicate a space threat, as well as mandatory warnings to relevant authorities or operators in case of major incidents or hazardous re-entries. This aligns with the goal of encouraging cross-border coordination and cooperation on security matters. The EU Space Strategy for Security and Defence also proposed the establishment of an Information Sharing and Analysis Centre (ISAC) to facilitate the exchange of best practices on resilience measures among commercial and public entities, a mechanism the EU Space Act could help operationalize. 
  • Resilience: Protecting critical infrastructure and essential space systems and services, such as the EU's own Galileo, Copernicus, and IRIS² constellations, is paramount, but the protection of commercial space-based services in the EU Member States is equally important. The EU Space Act is likely to define resilience as the capacity to prevent, protect against, resist, respond to, mitigate, and restore operations following disruptions caused by ICT risks, physical threats, or hostile actions. Potential mandated requirements could include incorporating security considerations into system design from the outset (security by design), establishing minimum levels of security and resilience for critical or essential space services, and obliging operators to conduct thorough risk assessments and implement mitigation measures. At the EU Member State level, the EU Space Act might require the identification of essential national space systems and services, the establishment of national security monitoring centers for systematic incident notification, the identification of major supply chain actors, and the development of coordinated national preparedness plans and emergency protocols.

3.3. Sustainability

The third pillar of the EU Space Act aims to ensure the long-term sustainability of space activities, addressing not only the orbital environment but also the terrestrial impacts of the space sector. This reflects a growing global concern that the benefits from space technology must not come at the cost of jeopardizing the environment, be it in orbit or on Earth.

Based on preliminary information and results from consultations, the EU Space Act may introduce the following requirements to achieve its sustainability objective:

  • Environmental Standards: The EU Space Act might establish binding environmental standards, which could include measures to curb light pollution and optical interference caused by large satellite constellations, which increasingly affect ground-based astronomical observations. This might also seek to limit the environmental footprint of space activities on Earth by addressing greenhouse gas emissions and pollution associated with rocket launches.
  • Deorbiting/End-of-Life Management: Reinforcing the safety aspects, mandatory minimum deorbiting standards seem a key component of sustainability, aiming to prevent the long-term accumulation of defunct objects in outer space. This promotes responsible behavior throughout a mission's lifecycle and helps preserve the space environment for use by future generations.
  • Life Cycle Considerations and Eco-Design: The Act may introduce requirements for conducting life cycle assessments of space activities, evaluating their environmental impact from design and manufacturing through launch, operation, and disposal. The application of eco-design principles to space systems could be encouraged or mandated, aiming to minimize negative environmental impacts at each stage. To incentivize compliance and provide market signals, the EU might consider introducing a voluntary sustainability label for companies or missions that meet specific criteria. Such a label could become a market differentiator, potentially influencing procurement decisions, especially for EU institutional contracts, and attracting environmentally conscious stakeholders.
  • In-Orbit Servicing and Active Debris Removal: The EU seems to recognize the potential of emerging technologies like satellite refueling, repair, life extension, and active debris removal to contribute to sustainability. The EU Space Act might include provisions to support the development of these technologies. The use of such technologies would further require guidance on legal questions on the registration, liability, and control during servicing or removal operations. Currently, it is unclear whether the EU Space Act will provide such detailed provisions.

4 | Implications

The EU Space Act, if implemented as anticipated, will have far-reaching consequences for all actors involved in the space sector, influencing the development, operation, and investment in space missions and space-based products and services.

The introduction of the EU Space Act could potentially trigger a Brussels Effect in space law. Similar to the global impact of GDPR in data protection, the size and importance of the EU market could compel non-EU space actors (manufacturers, operators, service providers) to adopt EU standards for safety, security, and sustainability simply to maintain access. If successful, this could lead to an indirect global harmonization based on European norms and priorities, effectively exporting EU laws worldwide. This, however, would require acceptance and support by other major space nations and regions in the world.

Space operators, likely both within the EU and those providing services into the EU market, will face new compliance requirements across the three pillars (safety, security, sustainability). Adhering to potentially stricter and mandatory standards for collision avoidance, debris mitigation, cybersecurity (including supply chain security), and environmental sustainability may require investments in new technologies, operational procedures, and compliance monitoring systems, which represents an increased compliance burden. Access to the internal market of the EU could become contingent upon compliance with the EU Space Act. While this may pose barriers for actors unable or unwilling to meet the new standards, it could conversely offer a competitive advantage to those who do. Achieving compliance could function as a seal of confidence, potentially enhancing market reputation and becoming a prerequisite for participation in EU-funded projects or accessing certain markets in EU Member States. 

The effect on overall competitiveness is multifaceted. While harmonization aims to create a level playing field within the EU and potentially boost the standing of compliant EU companies globally, there is also a risk that overly burdensome regulations could stifle innovation or drive some commercial activities to jurisdictions with less stringent requirements. This creates a potential paradox: the EU Space Act seeks to enhance competitiveness through high standards but might raise entry barriers, especially for SMEs. Finding the right balance between rigor and pragmatism in the final EU Space Act and its implementing laws and regulations will be crucial.

Beyond its direct impact on space tech companies, the EU Space Act has the potential to significantly influence the evolution of global space governance. By presenting a unified, legally binding framework adopted by its 27 Member States, the EU could wield greater influence in international forums such as COPUOS. A common EU position based on the EU Space Act could lend significant weight to proposals regarding STM, debris mitigation, sustainability, and responsible behaviors in space. 

5 | Conclusion

A core objective of the EU Space Act is to replace the current mosaic of potentially conflicting or incoherent national space laws of EU Member States with a single, coherent legal framework applicable across the European Union. The EU intends to increase legal certainty for operators, reduce complexity when operating across borders within the EU, establish a level playing field for competition within the European single market, and to have a stronger, unified voice for the EU in international space governance forums.

Practical considerations, including whether licensing and enforcement will be managed at the EU level or delegated back to national authorities, are key questions that will have an important impact on space tech companies operating in the EU. 

The forthcoming EU Space Act represents a pivotal moment for space law in Europe and potentially globally. It signals a decisive shift away from reliance on international treaties directed to their signatories (countries), and voluntary guidelines, towards a comprehensive, legally directly binding framework designed to manage the complexities of the modern space sector, including but not limited to New Space. By establishing common rules on safety, security, and sustainability, the EU aims not only to mitigate the growing risks associated with space activities but also to achieve broader strategic goals. These include fostering a harmonized and competitive single market for space products and services within the EU, enhancing the competitiveness of its industry on the world stage, and bolstering the European Union's strategic autonomy in a domain of increasing geopolitical and economic importance.

With the formal legislative proposal expected soon, the detailed provisions of the EU Space Act will become clearer. The subsequent negotiation process involving the European Parliament and the Council of the EU will further shape the final EU Space Act. If navigated successfully, the EU Space Act has the potential not only to enhance the safety, security, and sustainability of space activities within and connected to Europe but also to significantly shape the future norms and global standards governing humanity's endeavors in space.

Credits: AI generated image