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15.11.2024 9 min read
Space activities are no longer a distant reality. Every day, we use space services without realising it. For example, without satellites, 5G would be impossible, and the GPS signal, crucial for banking and stock market transactions, ensures the global synchronisation of clocks. Observing the earth from space also allows us to collect essential information for agriculture and combating climate change.

Between 2023 and 2032, it is expected, according to Euroconsult, that nearly 2,800 satellites will be launched each year, almost eight per day. In this context, it is crucial that space law, at international, national, and European levels, protects our security and economic interests.

  • Security

    Our growing reliance on space makes us more vulnerable. This year, for example, Russia launched a satellite that, according to the United States, could be used as a weapon to destroy other satellites. This Russian satellite shares the same low Earth orbit as a US government satellite. Some states have developed capabilities to attack critical space infrastructure and possess anti-satellite technologies that can disrupt space services.

    To address these threats, the European Union announced its first Space Strategy for Security and Defence in 2023 year. It includes two major pilot projects: the establishment of space domain awareness services and the development of a new Earth observation service. These initiatives aim to detect inappropriate behaviour in space and protect European assets.

    The four main UN space treaties (the UN Outer Space Treaty, the Rescue Agreement, the Liability Convention, and the Registration Convention) were established for security reasons during the Cold War, between 1967 and 1976. They provide international agreements that allow states to freely explore and use space for peaceful purposes. States cannot claim sovereignty over (parts of) the moon or other celestial bodies, as space belongs to everyone. However, in the current geopolitical and economic context, these principles of international law seem to be losing their influence.

  • Commercial space activities

    The rise of commercial activities in space brings increasing risks: satellite collisions, launch failures, and adverse environmental effects, both on Earth and in space. Surprisingly, UN treaties address these risks in a limited way, and more countries are implementing concrete measures in their national space laws.

    In the event of a disaster in space or on earth, for example, national policy determines to what extent the taxpayer will bear the financial consequences. The UN Space Treaty merely stipulates that states are mutually responsible for damages, even if caused by private individuals or private companies. The final coverage of the disaster varies from country to country. In Luxembourg, the operator is financially responsible for the risks of its space activities, either through own funds, insurance, or a bank guarantee.

    National legislation is also crucial for lawyers specialising in mergers and acquisitions. Luxembourg's space law, for instance, requires ministerial authorisation for the transfer of an authorised space activity, or when a transfer of personal or real rights changes the control of a space object. In some cases, even the transfer of shares in space companies (changes of control) must be notified in advance to allow the minister to oppose if necessary.

  • Sustainability

    Protecting the environment, both on earth and in space, is a major concern for policymakers, the public, and the aerospace industry. What happens to space debris floating uncontrollably after a collision? Or the satellites deactivated due to malfunctions or after completing a mission? Those who launch and operate satellites aspire to a "clear orbit." The presence of uncontrolled projectiles poses a real risk.

    A future European space law must address these concerns and include measures for the safe, resilient, and sustainable use of space. Coordinated space traffic management and additional registration obligations to prevent satellite collisions are under discussion. The introduction of a 'safe space' label, similar to the concept of an eco-label, is also being considered.

    With these new rules, the European Union aims to create a single space market, while preserving the competitiveness of its aerospace industry. The rules will be applied proportionally, taking into account both start-ups and large companies. Non-European companies operating in the European Union will also have to comply.

    While many consider European space legislation essential, it remains controversial. The European Union's limited competencies in space policy could pose obstacles, and the Treaty on the Functioning of the European Union excludes any harmonisation in this field. The publication of the proposed law has already been postponed twice and is eagerly awaited.

    Space law is therefore essential not only to protect our security and economic interests, but also to promote sustainability, both in space and on Earth. With the expected increase in the number of satellites and growing dependence on space-based services, the importance of effective and innovative regulation continues to grow.

  • Download the pdf (in French)

    This article was published in the November 2024 edition of Agefi Luxembourg.

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