“Reaching High”: A First Look at the EU Space Act – (and the Vision for the European Space Economy)

On 25 June 2025, more than 15 months later than originally anticipated, the European Commission published the draft EU Space Act (EUSA). The EUSA is expected to enter into force on 1 January 2030, following consideration by the European Parliament and the EU Council. The EUSA includes further specific transition periods for certain obligations and/or stakeholders. 

On the same date, the Commission also published the Vision for the European Space Economy (ESE Vision) which is set to be implemented as an Initiative with immediate effect. EUSA and the ESE Vision are closely linked insofar as the EUSA is intended to lay the regulatory foundation for achieving the EU’s long-term objective of establishing a competitive, and globally leading European Space Economy by 2050.

In short

Core Matters under the EUSA – What does it cover?

In a nutshell, the EUSA identifies three core pillars applicable to authorisation processes conducted by Member States or the European Union Agency for the Space Programme (EUSPA):

• Safety – technical standards and operational conduct-requirements to ensure the safe use of space and detailed obligations concerning the mitigation of space debris
• Resilience – detailed requirements and standards concerning the ability of space systems and operations to withstand and recover from disruptions, in particular cyber-threats, and connected monitoring and reporting obligations
• Sustainability – obligation to assess the ecological footprint of space missions throughout the entire lifecycle of an activity, from design and launch to operation and disposal

Key Features EUSA – How will it be applied?

• Directly binding Regulation, setting uniform (harmonized) minimum standards for the national licencing procedures in all EU Member States
• Dense set of detailed technical requirements for authorization of space activities
• Resilience provisions with priority in relation to existing NIS2 and CER
• New EU Register (URSO) for all space operators and new additional responsibilities and tasks on EUSPA level (including power of investigation, inspections and to impose penalties)
• Establishment of an e-certificate for traceability of space service and space operators
• Extension to Non-Union stakeholders via mandatory licensing and registration process through EUSPA
• Easements for Industry stakeholders regarding procedures, fees or applicability depending on size and/or risk assessment and assistance offers for stakeholders as well as co-founding for R&D and limited other forms of financial facilitation
• The EUSA is set to come into force from1 January 2030; with specific transition periods running through 2031, and for in-space operations and services (ISOS) until 1 January 2034.

Addressees of EUSA – who is affected?

• EU and Non-EU stakeholders planning or engaged in space activities
• Non-EU stakeholders seeking to provide space services, including data services within the EU
• Indirectly, suppliers to the above entities regardless of size, where obligations arise under the EUSA’s supply-chain provisions

Relevance – Why does EUSA Matter?

• First coherent and to a large extent EU wide harmonized/(level) playing field for Space activities in the EU, addressing regulatory fragmentation and promoting the functioning of the single market
• Milestone in promotion of sustainable space practices
• Foundational step in implementing the Vision for the European Space Economy
• Increases pressure on Member States to adopt national space laws and designate competent agencies, or to align existing national space laws to the EU Space Act
• However, it introduces significant financial, procedural, and documentation burden for industry stakeholders

Vision for European Space Economy – How does it align with EUSA? 

• Initiative which addresses Space as a comprehensive ecosystem, including both the industrial basis as well as the current and future space activities
• Intended to include ESA, EUSPA, and other institutional and industry stakeholders
• Relies on the comprehensive legal framework established by the EUSA as a foundation
• Announces additional funding and co-operation schemes via various programmes

And Now? – How to prepare?

Overall, plan along the transition timeline until end of 2029 once the EUSA is final after European Parliament and Council decision (there is time, use it wisely)

• Industry and interest association, review, analyse, and communicate “findings” and proposals for finalizing the EUSA (now is the time to do that), particularly with respect to documentation burdens and thresholds
• Addressees, review the detailed technical and procedural requirements once final, obtain and make use of the facilitation services from EUSPA and other institutions  
• Addressees, assess and engage with key suppliers regarding the environmental footprint, life cycle assessments, and resilience obligations imposed under the EUSA once final. Contractual mechanisms should be used to ensure suppliers provide required information.
• Insurance providers and Agents, assess the positive impact of the enhanced requirements
• Space Institutions, deliver the promised, high quality capacity building and facilitation for stakeholders, including checklists and knowledgeable contact persons
• Incubators and Accelerators, build up capacity and prepare for and organise capacity building and points of contact, organise with institutions
• Investors, update the DD scope, build in costs and think of opportunities the enhanced and more uniform space economy may bring, including possible uses of the Union Space Register and the e-certificate for financing traceability
• Start ups/Scale ups, make use of facilitation offers and demand the Institutions to make good on the promise of facilitation
• Member States, establish or designate national space authorities, develop internal capacities as needed, and implement the necessary national authorisation procedures (i.e., national space law).
• Non-Union addressees, check whether the relevant country would be eligible for an equivalence certificate (lobby for your country to obtain such a certificate)

In more detail

1. Background EUSA and the Vision for a European Space Economy

Until now, EU Member States have developed their national space legislation independently, if at all. Currently, just over half of the Member States have adopted national space legislation. Germany, for example, published cornerstones for a national space law in October 2024 but has no national Space Law yet. On the other hand, in particular Italy and Norway announced first of its kind national Space Laws within the same week the draft EUSA was published.

The EU-level regulation is driven by the growing technological, economical and, above all at the moment, strategic importance of space activities, as is the Vision for the European Space Economy. Before such background, the EU aims to strengthen the European Space Economy by mitigating competitive disadvantages arising from fragmented legal frameworks across the Union. Another objective is to establish minimum standards, and thereby stimulate technological innovation, with respect to the safety, resilience and environmental sustainability of space infrastructure.

The ESE Vision is a (mere) EU-level initiative/project, which sets long-term objectives for Europe in space and aims to outline the corresponding measures. The ESE Vision aims to position the EU as a global leader in the space economy by 2050. The EUSA provides for the required regulatory framework. Under supervision of a so called “Space Team Europe”, set to consist inter alia of members from ESA and EUSPA, the ESE Vision aims to coordinate unified European efforts for that goal. Announced measures include:

• support for Innovation and Investment, including the creation of various facilities accessible to private players of varying size and maturity
• closer cooperation between ESA and EUSPA
• ensuring technological readiness
• support for Space Commercialisation by facilitating improved access to finance
• promotion of economy diplomacy for the space sector
• the development of sovereign in-Orbit capabilities
• fostering demand for both, standard space services and also dual-use and defence related services.

2. Remaining Competences on national level – No full Harmonisation

The EU Space Act, once becoming effective, will be directly applicable in all Member States. Unlike directives such as NIS2 and CER, the EUSA will not require any further national implementation measures. 

The EUSA introduces significant uniformity, however, does not provide for full harmonisation. It allows and even obliges the Member States to assume certain responsibilities. In particular, Member States 

• will be required to either designate or establish national competent authorities (NCAs) and notify them to the Commission. These NCAs will be responsible for implementing the requirements of the EU Space Act, will be responsible for the national authorisation process and will also be responsible for registering all authorised space operators in the new Union Register of Space Objects (URSO)
• must accept and recognise authorisations for space activities granted by other Member States, insofar as they relate to the core areas covered by the EUSA.

The EUSA does not impose restrictions in areas it leaves unregulated. Particularly relevant in this respect are requirements relating to liability coverage for potential damage caused by space objects, as well as the possibility of transferring international liability, under Article VII of the OST and the Liability Convention, from the state to private actors where the damage is attributable to their activities. 

Member States will also retain the right to impose stricter requirements where objectively necessary to ensure the safety, resilience, or environmental sustainability of spacecraft operations or launches conducted in their territories by Union space operators authorised elsewhere in the EU.

In summary, this means that even after the EUSA is formally adopted, the EU Space Framework will not constitute a fully ‘level playing field’. With the ongoing competition between national jurisdictions, Member States will continue to possess tools to attract companies to their territory, for instance, by adopting a restrained approach to the transfer of liability, or by introducing liability caps beyond which the state assumes responsibility.

3. Core Regulated Matters

The core matters relevant for space operators regulated under the proposed EUSA focus on three key aspects:

• Safety – ensuring the safe use of space by preventing accidents, avoiding harmful interference, protecting human life and property, and actively mitigating space debris
• Resilience – enhancing the ability of space systems and operations to withstand, adapt to, and recover from disruptions, including technical failures, cyber threats, and hostile actions
• Sustainability – focused on assessing the ecological footprint of space missions throughout their lifecycle, from design and launch to operation and disposal of space-assets and space operations.

a) Safety

In relation to safety, the proposed EU Space Act

• lays down technical rules to be implemented by space operators to prevent collisions and mitigate space debris; and
• provides for space traffic management through a set of orbital traffic rules.

The technical rules first differentiate between launchers and spacecraft.

• Launch operators are required to coordinate with the relevant national authorities and space traffic management service providers to mitigate collision risks during both launch and re-entry phases. They must also install flight safety systems and implement effective space debris mitigation measures. The Commission is expected to adopt further implementing acts specifying methodologies for calculating collision avoidance windows, defining casualty risk thresholds, and outlining coordination procedures.
• With respect to spacecraft, the draft requires space operators to ensure the trackability of their space objects and to subscribe to collision avoidance services. A minimum level of manoeuvrability must be maintained throughout the mission's lifetime, and re-entry must be properly coordinated. Additionally, operators are obliged to prepare a space debris mitigation plan and to minimise both light and radio frequency pollution. Mission extensions may be granted, provided that operators continue to meet end-of-life and space debris mitigation requirements. The regulation also sets out design and manufacturing standards for space objects, with which operators must ensure their suppliers are in compliance. Spacecraft shall also be equipped with interfaces to receive in-space servicing. The technical details of these interfaces are still to be detailed by the Commission in future implementing acts.
• Further differentiation of the technical rules applies based on orbital altitude. A generally lighter safety regime applies to Very Low Earth Orbit (VLEO) missions, as rapid atmospheric re-entry naturally limits debris. On the other hand, large constellations must meet enhanced safety and debris mitigation standards.

The orbital traffic rules on the other hand describe how collision avoidance manoeuvres should be executed, particularly in high-risk situations. To resolve imminent conjunctions between multiple manoeuvrable spacecraft, a ‘right-of-way’ approach will be introduced designed to help satellite operators conserve fuel.

b) Resilience

The draft EUSA places particular emphasis on strengthening the resilience of space systems, by setting out detailed and explicit cybersecurity rules applicable to all space operators and space infrastructure assets.

• A central pillar of these rules will be the requirement to conduct comprehensive, mission-specific risk assessments and implement risk management measures throughout the lifecycle of a space mission, from design to disposal.  
• Additional stipulations include strict access controls for ground infrastructure, detection, monitoring and documentation of incidents, implementation of cryptography, redundancy and continuity protocols as well as recovery plans.

For this purpose, the proposed EU Space Act is designed to build on existing legislation on cybersecurity and physical resilience of critical entities. In relation to the NIS2 Directive, the EU Space will be ‘lex specialis’. Accordingly, Union space operators designated as essential or important under NIS2, will only need to comply with the EUSA’s resilience provisions, avoiding duplicative obligations. The CER Directive and the EUSA, however, will apply complementarily.

Union space operators shall report significant incidents regarding Union-owned space assets to the Agency. To facilitate cooperation between the Commission, the Agency, and the NCAs, a new UNION Space Resilience Network (EUSRN) is expected to be established to monitor and manage significant incidents.

Important: the extent of the Resilience obligations are proportionate to the size of the relevant space operator, mission criticality, and the use of propulsion. Thus, Union space operators shall take into account the type and features of the specific space mission, such as its specific objectives, the orbit and constellation size, the impact upon other space activities, as well as the size of the respective entity, the exposure to risk and the likelihood and severity of possible incidents.

A simplified risk management applies to small enterprises and research or education institutions (Article 10(3), Article 15(2) EUSA draft).

c) Sustainability

Of the three core matters to be regulated by the EU Space Act, the sustainability pillar is the one with the lowest level of regulation. The growing importance of sustainability in the space sector is acknowledged, and it is recognised that there is a significant lack of reliable data on the environmental impact of space activities. EUSA, therefore, is set to establish a common methodology for calculating the environmental impact of space activities in the Union. To accomplish this goal, the EUSA builds on the Product Environmental Footprint (PEF) approach, to support the development and mandatory use of a space-specific methodology for Life Cycle Assessments (LCA). 

Unless they meet the conditions for an exemption, Union space operators will have to calculate the environmental footprint throughout the entire lifecycle of a space mission, from design and manufacturing to launch, operation, and end-of-life stages. They shall be obliged to submit an Environmental Footprint Declaration (EFD) as part of their authorisation application, supported by studies and data verified by a qualified technical body for space activities. To produce the required EFD, space operators will also be obliged to contractually require all relevant data from their suppliers which extends EUSA obligations to such suppliers indirectly.

The EFD shall be accompanied by an extensive documentation comprising

• an EF certificate issued by a qualified technical body,
• an EF study supporting the results of the EFD,
• the aggregated and disaggregated datasets on the basis of which the EF has been calculated and
• a proof of transmission of the datasets to the Commission.

Space operators that are small-sized enterprises or are research or education institutions are exempt from the obligation to calculate the environmental footprint in case of In-Orbit Demonstration and Validation (IOD/IOV) space missions.

There is also a longer transition period for small-sized enterprises and research and education institutions. These entities are exempt from the sustainability requirements (Title IV, Chapter III of the EUSA) until 31 December 2031.

4. Applicability to Non-EU Stakeholders / International Co-Operation

Third country space operators wishing to offer space services within the EU must comply with a significant subset of the rules set out in the EUSA. Concerns that the EUSA might not apply to non-European competitors operating in the EU, thereby distorting competition, have thus proven unfounded.

Third country space operators need to

• apply for registration in the URSO via EUSPA, and
• be in possession of an e-certificate according to Article 25(1) EUSA, before they are allowed to provide space services to Union space operators and in relation to Union-owned assets.

It remains unclear to what extent these requirements apply to operators who wish to provide space-based data services or space services not related to the aforementioned groups.

Third country space operators are obliged to designate a legal representative in the Union to ensure effective cooperation with competent authorities, the Commission and the EUSPA.

The Commission may issue an equivalence decision to third-country space operators. Such a decision recognises that the space law of the third country in which the operator is established and authorised is materially aligned with the relevant subset of EUSA requirements. In such cases, operators authorised under their respective jurisdictions are presumed to comply also with the requirements of the EUSA, which will allow them to be entered in URSO without an additional procedure.

5. Authorisation Process under the EUSA

Once the EUSA enters into force, the procedure for obtaining authorisation to provide space services within the Union varies depending on the type of space operator and whether the space operator intends to operate Union-owned space assets (Galileo, Copernicus….):

• a Union-based space operator must apply for authorisation in its Member State of establishment through the national competent authority; if it intends to launch from or operate in a different Member State, an additional authorisation is required; however, with respect to the aspects regulated in EUSA, the initial authorisation must be recognised, unless the second Member State imposes no stricter requirements where possible in accordance with the degree of harmonisation established through EUSA;
• a Union-based space operator intending to operate a Union-owned space asset must obtain authorisation from the Commission, with certain parts of the application also filed with EUSPA;
• a third-country (non-Union) space operator must apply for registration in the Union Register for Space Objects (URSO) via EUSPA; upon registration, the operator will receive an e-certificate, which entitles the holder to offer services within the Union.

Applications for authorisation by Union-based space operators (not intending to operate Union-owned space assets) must include a technical file demonstrating compliance with the safety, resilience, and sustainability requirements under the EUSA, as well as applicable rules for in-space operations and services (ISOS) and orbital traffic.

Under the current draft, the maximum period between the receipt of a complete application and a decision by the competent authority shall be 12 (!) months. This timeline appears notably long, especially when compared to timeframes discussed at national levels, for example, in connection with the cornerstones of a German space law published by the previous federal government.

6. Support for industry stakeholders, especially SMEs and Startups under the EUSA

The implementation of the EUSA will impose additional costs and procedural burdens on private sector companies for technical and operational requirements, administrative procedures and enforcement. According to an impact assessment conducted by the European Commission, manufacturing costs for industry and particularly SMEs could increase by 3% to 10%. 

In addition, the Commission estimates that companies will need to increase their IT budgets by approximately 10% to address the additional risk management and documentation requirements introduced by the EUSA. Authorisation procedures are expected to cost approximately EUR 100,000 each. However, it remains to be seen whether these estimates remain realistic in 2030 and beyond, and whether they adequately account for compliance costs in supply chains.

On the other hand, the Commission also anticipates positive financial effects. Reducing fragmentation is believed to generate substantial cost efficiencies, enhanced safety standards are expected to extend the average operational lifetime of satellites in low Earth orbit (LEO) from five to six years and strengthened cybersecurity protocols are seen to mitigate cyber-related risks. 

The following regulatory easements are generally foreseen for certain space operators:

• small enterprises (as defined under the general EU framework) and research or education institutions may apply a simplified risk management scheme as described in the EUSA
• the same entities are also exempt from the obligation to calculate the environmental footprint in case of In-Orbit Demonstration and Validation (IOD/IOV) space missions. They also benefit from an extended transition period, remaining exempt from sustainability requirements until 31 December 2031.

In addition, the EUSA uses supporting measures such as capacity-building through guidance materials, technical assistance, and funding of a one-stop information portal. The draft provides for direct co-funding of joint research and development projects in areas such as encryption technologies, on-board safety systems, ISOS technologies and concepts as well as any other matters covered by the EUSA.  Furthermore, the principle of proportionality is embedded in some of the rules, particularly those with respect to resilience, which takes into account, for instance, the size of the company and the criticality of the mission or orbit.

Nevertheless, small and medium-sized enterprises (SMEs) and startups may continue to encounter significant challenges to comply and even navigate the new regulation. It remains to be seen whether the new registration and e-certificate procedures can be used, in absence of a fully ratified Cape-Town protocol, to facilitate financing.

7. The EU Space Label

Space operators that voluntarily meet higher standards of safety, resilience and environmental sustainability, than those set out in the EUSA, may be awarded a ‘Union Space Label’. 

At present, the primary benefit of the label is that it can be used for advertising purposes. However, the EUSA draft already anticipates that the Union Space Safety Label will play a role in national-level public procurement procedures. To that end, the Commission, in close cooperation with the EUSPA and the European Union Agency for Cybersecurity, is tasked with developing relevant best practices. However, further details are yet to be provided.  

Potential future benefits associated with the label could include preferential access to EU or ESA calls, improved financing conditions, or insurance facilitation. In particular, the label may enable access to funding and support mechanisms outlined in the Vision for the European Space Ecosystem.

8. Next Steps in the Legislative process

The EUSA is set to apply from 1 January 2030 (Article 119 EUSA), providing a transition period of more than four years from today.

Further transition periods:

• until 1 January 2032 for authorisations concerning assets scheduled for launch after 1 January 2030, where technical approval of the spacecraft design was already obtained prior to that date; the final deadline for such technical approval, is yet to be determined;  
• regulations regarding in-space operations and services (ISOS) will only enter into force from 1 January 2034 on.

However, the current text remains a proposal and must still be adopted by both the European Parliament and the Council. It is highly likely that the draft will undergo at least certain revisions during the legislative process. This in particular in the light of the opposition of a number of Member States against strict and binding rules on EU level for all of the core pillars.

In the run-up to the publication of the EUSA draft, Finland and Sweden in particular expressed criticism of binding regulation at the EU level in a non-paper. Germany, Italy, and Slovakia, on the other hand, took a generally positive stance on EU-wide harmonisation in a non-public non-paper but emphasized that the regulations should not be overly burdensome in detail and that the requirements must, in particular, respect the principle of proportionality. Accordingly, the proportionality of certain requirements and their impact on SMEs will likely be a key focus of legislative discussions. It is also anticipated that the EFD requirements will be subject to scrutiny.

The EUSA is scheduled for discussion during the plenary session of the European Economic and Social Committee (EESC) from 21 to 23 October 2025. Accordingly, formal adoption by the Parliament and the Council is unlikely to occur before the end of the year.
 

The EUSA draft and some materials can be accessed here.

Information on the Vision for the European Space Economy are accessible here.

This article was created in collaboration with our research assistant Daniel Budke.