CMS law.tax.future | Adrian Zarm | Dr. Julia Dreyer

European Union | Germany

The European Commission presented the draft for an EU Space Act on 25 June 2025. This article provides an initial overview.

The commercial use of space is increasing, more and more companies are venturing into space, and more and more satellites are in orbit, sometimes giving rise to undesirable consequences such as increasing space debris. With the EU Space Act, the EU Commission is now focusing on the long-overdue regulation of this economic area. The space economy and the EU Space Act one are therefore among the current top priorities of the EU. The aim is to harmonise the legal framework for companies, avoid fragmentation via national space laws and ensure the comprehensive use of space-based data. Combining these with other approaches should help promote innovation instead of slowing it down.

On 25 June 2025, the European Commission presented its proposal for the EU Space Act (Regulation of the European Parliament and of the Council on the safety, resilience and sustainability of space activities in the Union, COM(2025) 335), which is now being negotiated in the European Parliament and the Council. According to Article 1 (2) of the draft EU Space Act, it essentially rests on three pillars: safety, resilience and sustainability.

Safety, resilience and sustainability – the three pillars of the EU Space Act

1st pillar: To maintain safety in space, the EU Space Act aims to introduce various measures to improve the tracking of space objects, mitigate the creation of new debris and ensure the safe disposal of satellites. This is in response to the aforementioned increase in the number of satellites, which poses a heightened risk of collision and thus debris.

2nd pillar: Under the keyword “resilience”, the EU Space Act also focuses on cybersecurity. Among others, Articles 76-78 of the 100-page draft EU Space Act require operators in space to implement risk management measures and risk assessments during a satellite’s life cycle. Specific cybersecurity regulations for the space sector are to be applied. Article 75 draft EU Space Act regulates its relationship to the NIS2 and CER Directive.

3rd pillar: The sustainability of European space use is to be ensured by provisions in the EU Space Act that serve to measure and calculate the environmental impact of space activities. The draft regulation addresses sustainability goals both in Chapter III and elsewhere. With a few exceptions, space operators will be required to submit an Environmental Footprint Declaration (Article 96 draft EU Space Act).

It is intended that the EU Space Act will apply comprehensively and regulate European space activities

The draft EU Space Act stipulates that its provisions will apply to European and national operators of space objects and space service providers as well as to operators from a third country if they offer their services in Europe. Article 2 (1) draft EU Space Act states that the regulation will only apply to space operators, collision avoidance space service providers, primary providers of space-based data and international organisations. Space objects or assets used exclusively for defence or national security purposes that are launched before 1 January 2030 are excluded from the scope of the regulation (Article 2 (3) (a), (d) draft EU Space Act).

The EU Space Act is intended to regulate the authorisation, registration and supervision of space activities carried out by space operators established in the Union. For example, Article 6 (1) draft EU Space Act stipulates that space operators may only provide space services in the EU if they have been authorised to do so in one of the Member States. This authorisation must demonstrate that the requirements of Chapters I to V of Title IV of the draft EU Space Act are met. Title IV contains technical provisions for safety and sustainability in the space sector – e.g. for launch vehicles and spacecraft as well as specifications for the resilience of space infrastructure.

For example, (launch) operators of launch vehicles are required to submit a Launch Safety Plan to the competent authority and to mitigate the risk of collisions, e.g. with aircraft during launch and re-entry, using safety and coordination measures (Article 58f. draft EU Space Act). To promote sustainability, launch vehicle operators are also required to mitigate space debris and take appropriate measures to this end, which are listed in Article 61 draft EU Space Act. Similar obligations apply to spacecraft operators (Article 70 draft EU Space Act). Article 7 draft EU Space Act regulates the details of the authorisation process.

According to Article 28 (1) draft EU Space Act, each Member State must designate or establish a public authority, responsible for the authorisation and supervision of space operators in the EU. According to Article 29 (1) draft EU Space Act, the competent authority will, among other things, monitor the application of the provisions of the Space Act (a), carry out investigations (b) and cooperate with the competent authorities of the other Member States (d). In addition, the authorities are to be given powers to impose sanctions, including the imposition of fines for violations of the EU Space Act (Article 30 (1), (6) draft EU Space Act).

Space Act is closely linked to the EU’s data strategy

It is clear from Recital 1 and Article 1 of the draft EU Space Act that it is closely linked to the EU’s data strategy and the EU has recognised the vital importance of the economics of space data. The regulation is intended to lay down rules for the establishment and functioning of an internal market for space-based data and space services. This is dealt with in Articles 24 to 27 of the draft EU Space Act, among others.

EU Space Act to apply as of January 2030

Article 119 of the draft EU Space Act currently stipulates that its provisions will apply as of 1 January 2030. As a regulation, the Space Act will apply directly and requires no further implementation by the Member States. The EU Space Act will now enter the EU’s ordinary legislative procedure, meaning that amendments to the draft are still to be expected.

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This article first appeared on Lexology | Source