The EU Space Act: vanguard and regulatory challengesBY LUCA GALIZIA

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The proposal for a Regulation on the safety, resilience and sustainability of space activities in the Union (“EU Space Act”), presented by the European Commission on 25 June 2025, represents a key initiative aimed at creating a single European market in the commercial space sector. The text indeed aims to define and harmonize the requirements for the safety of spacecraft and launch vehicles, the security and resilience of physical and digital space infrastructure, and the environmental sustainability (on Earth and in space) of space missions. The initiative arises at a moment of strong growth for the European “space economy” and translates key strategic principles into binding provisions, with the objective of strengthening the EU’s competitiveness.

What the new Regulation will cover

The proposal aims to regulate the provision of space-based data (i.e., data received from outer space) and space services (i.e., operations involving spacecraft, launch services or services related to launch sites, in-space operations and services taking place in space between two operators and services relating to collision avoidance) carried out by private operators and international organisations.

The future Regulation will also apply to operators established in third countries, whenever they provide space-based data or space services in the EU (the principle of extraterritoriality).

The text is based on 3 guiding principles: 

  • Single market for space services, with mutual recognition by Member States of authorisations issued in other Member States or at a centralised EU level.
  • Subsidiary, in the sense that only commercial activities (in a broad sense, also including research ones) will be regulated, leaving those connected to defence within the full competence of Member States.
  • Proportionality, in the sense of providing for simplified regulatory regimes for small and medium-sized enterprises (SMEs) and for academic/research institutions.

These principles inform 6 main regulatory areas: 1. supervision, enforcement and administration; 2. Safety of space activities; 3. Security and resilience of space infrastructure; 4. Environmental sustainability of space activities; 5. In-space Operations and Services (ISOS); 6. Mandatory and voluntary technical standards. 

From an Administrative Perspective

The European Commission’s proposal introduces a division of responsibilities between Union and national institutions:

  • EU centralised level: the European Union Agency for the Space Programme (EUSPA) will play a central role, dealing with technical assessments and managing the Union Registry of Space Objects (URSO); the European Commission will have decision-making and sanctioning powers (although both these bodies will share extensive investigation powers, including in relation to non-EU operators).
  • National level: Member States will designate national competent authorities (NCAs) with supervisory and inspection powers over operators based in their territory (provided that they do not manage Union-owned assets).

Market access: a three-track system

The text establishes a three-track system for market access: 

  • A centralised EU authorisation for Union-based operators managing or operating Union-owned assets;
  • A centralised registration procedure for third-country operators and international organisations;
  • A national authorisation for the majority of Union-based operators.

In this regard, it should be briefly noted that there are some inconsistencies in these procedures (for example, it is not clear what the actual subject of the authorisation is, whether it is a space activity, a mission or a space object) and shortcomings (for example, it is not clearly specified whether the application for centralised authorisation should be addressed to the European Commission or the Agency), but it is reasonable to expect that these will be resolved in the next institutional steps.

Anyway, simplified procedures are foreseen for satellite constellations, SMEs, and research and education missions.

Once the authorization (at the EU or national level) or the registration has been granted, the Agency will register the operator in the Union Registry of Space Objects (URSO) – a name that may be somewhat misleading, since the registration applies to operators who manage space infrastructure as part of a space mission rather than to space objects per se – and will issue an ‘electronic certificate’ (or e-certificate), which will be indispensable for the legal provision of space services and space-based data in the EU single market.

Technical standards and safety

From a technical standpoint, the text describes the strict safety requirements covering the entire lifecycle of spacecraft and launch vehicles, including tracking systems, manoeuvrability requirements, rules for orbital traffic, provisions to avoid and mitigate the risk of collisions, detailed plans for the reduction of space debris generation (Space Debris Mitigation Plan) and for the limitation of light and radio pollution (Light and Radio Pollution Limitation Plan) and, finally, obligations for the disposal of space objects at end-of-life (for example, for those operating in geostationary orbits, through their relocation to the so-called ‘graveyard orbits’).

In parallel, rules on physical and digital security are introduced, mandating continuous risk management against threats (including cyber-attacks), crisis response plans and reporting of significant incidents, integrating with directives such as NIS2 and CER. These obligations apply, with some exemptions and adaptations, also to third-country operators operating in the EU.

Sustainability and innovation

The EU Space Act places great emphasis on environmental sustainability both in space and on Earth, by introducing the obligation to calculate the Environmental Footprint of space activities, through studies certified by qualified technical bodies (QTBs), with exemptions for SMEs and educational institutions.

The proposed Regulation also looks to the future, outlining the regulatory framework for the “in-space economy”: from 1 January 2034, specific rules will be operative for In-space Operations and Services (ISOS), such as on-orbit refuelling or repair or Active Debris Removal, which will require standardised interfaces and specific contracts between a servicer and a client spacecraft.

Finally, the text promotes mandatory harmonised standards alongside ‘Union Space Label Schemes’ to reward excellent practices that go beyond what is strictly required by regulatory provisions on safety, resilience and sustainability.

Next steps

The Regulation will now go to the European Parliament and will then be the subject of inter-institutional negotiations to reach an agreed text. Application is foreseen only from 1 January 2030, with a transitional regime for assets launched before that date. The European Commission has already declared that it will support stakeholders with guidance materials, information portals and funding for research projects, also promoting international cooperation through agreements with third countries and international organisations.

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*Luca Galizia is an Italian lawyer based in Brussels with 15 years of professional experience, both in-house and as a private practitioner, including more than eight years in the life sciences sector, with specific expertise in food, food supplements, and nutraceuticals, and more recently in the field of space activities. He currently works at the international law firm Keller and Heckman, where he has played a key role in establishing the firm’s Space Law practice.

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