On 25 June 2025, the EU Commission published the 'Proposal for a Regulation of the European Parliament and of the Council on the safety, resilience and sustainability of space activities in the Union' (the "EU Space Act").
The current rules governing this area are fragmented, which makes compliance costly and affects the pace of innovation. The purpose of the EU Space Act is to create a single market for space activities, harmonising the various national rules so that there is one rulebook for all member states. The hope is that this will foster growth, innovation and competitiveness in this sector.
What the EU Space Act aims to do
While still an early draft, the EU Space Act has a few key points, which are as follows:
- Title 1: sets out general rules concerning authorisation, registration and supervision of space activities in the EU, as well as orbit traffic management, governance and enforcement aspects and the establishment of an EU space label;
- Title 2: lays down the conditions that EU space operators must meet to obtain authorisation to carry out space activities;
- Title 3: sets out that each Member State will designate or set up a national competent authority to oversee compliance of EU space operators;
- Title 4: lays down rules for safety and sustainability in space, covering launches and spacecraft, and aims to reduce collision risks, mitigate the creation of debris in orbit and ensure safe launch and re-entry;
- Title 5: sets out that the EU Commission may grant equivalence decisions to third-country space operators and frames the rules applicable to international organisations depending on the type of asset;
- Title 6: lays down a set of supporting measures to help offset part of the implementation costs, notably for start-ups, scale-ups and SMEs and support the implementation of the EU Space Act; and
- Title 7: contains provisions regarding the power of the EU Commission to adopt delegated and implementing acts.
The Proposal also states that the EU Space Act will operate as lex specialis to Directive 2022/2555 (more commonly known as NIS2) and the Critical Entities Resilience Directive. Therefore, the EU Space Act will take precedence should there ever be a conflict, given that those involved in the space economy are currently within the scope of those two pre-existing Directives.
Opportunities for Irish Space Industry
Ireland has an important role in the European space industry. Since it joined the European Space Agency (the ESA) in 1975, Irish industry and research groups have contributed significantly to Europe's space missions. The EU Space Act may encourage Ireland to accelerate investment in the space sector. The Department of Business, Enterprise and Innovation published the 'National Space Strategy for Enterprise 2019-2025' (Strategy), which aims to develop the space industry in Ireland. The EU Space Act could help Ireland reach its goals under the Strategy, as it will help provide access to bigger markets.
The space industry in Scotland serves as a good example of what the Irish space industry could achieve. The Sutherland spaceport in Scotland is the first spaceport in the UK capable of vertical rocket launches. Ireland could follow Scotland's example and develop launch facilities, as Ireland's location and climate are also ideal for such projects. Furthermore, although Brexit does not necessarily impact Scotland's participation in European space projects, since membership of the ESA does not depend on EU membership, there are, in theory, additional hurdles for it to overcome. Therefore, Ireland has an opportunity to compete in these projects.
Comment
The EU Space Act is a welcome development, as creating a single market for space may facilitate a cleaner, safer, and more competitive space sector. The EU Space Act should also serve as a signal for Ireland to grow its space industry and take advantage of the harmonised rules, access to bigger markets, and increased competition.
The EU Space Act will be negotiated by the European Parliament and the Council generally under the ordinary legislative procedure. As of this writing, it is currently undergoing its first reading with the Council of the European Union.
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