EU Space Act Proposal Lifts Off

On 25 June 2025, the European Commission published its much-anticipated proposal for an EU Space Act. The proposal is designed to create a harmonised EU framework for space policy and establish “ambitious new measures to make Europe’s space sector cleaner, safer and more competitive“.

Background

Currently, space-related laws in the EU are developed individually by each Member State. This results in inconsistent approaches to regulating space activities, with widely varying standards and requirements imposed on companies operating across the bloc.

This fragmentation in the policy framework is detrimental to business and negatively affects the EU’s competitiveness in space, as explained by the Commissioner for Defence and Space, Andrius Kubilius.

The EU Space Act is intended to create a single market for space activities. The proposed Regulation introduces a harmonised framework designed to “ensure safety, resilience, and environmental responsibility, while helping companies grow and scale up across borders“.

A common, coherent and stable set of rules will enable companies to operate on a level playing field with greater predictability. This in turn should make the EU space industry more competitive.

Implications

The Space Act is set to address current challenges faced in the space domain, such as the increasing risks of collisions due to increased congestion and high-level threats from cyberattacks and electronic interference with space infrastructures.

The proposal is built on three key pillars:

1. Safety: establishing new rules for the tracking of space objects and limiting the creation of new debris, to preserve a secure and uninterrupted access to space.
2. Resilience: imposing tailored cybersecurity requirements alongside a duty for space operators to conduct thorough risk assessments to protect space infrastructure and ensure business continuity.
3. Sustainability: creating common responsibilities for operators to measure the environmental impact of their space activities to ensure consistent verified data and encourage innovation by supporting the development of innovative technologies, such as in-space servicing, to extend satellite life and reduce debris.

As it aims to establish a fair, innovation-driving framework, the Regulation provides that proportional requirements will be scaled based on company size and risk profile.

Next steps

The EU Space Act proposal will now undergo the ordinary legislative procedure, involving negotiations by the European Parliament and the Council. This can be a lengthy process, usually taking over a year to complete. We will report further as it progresses.

Once officially adopted, the Regulation will be binding on and directly enforceable in all EU member states.

The draft provides for application starting from 1 January 2030, with a two-year transitional period.

The new rules would apply to both EU and non-EU operators who provide space services in Europe, and to space assets launched on or after 1 January 2030.

The European Commission indicated that support will be offered to mitigate potential compliance costs for companies.

Considerations

As many space activities inherently require juggling between the regulatory frameworks of multiple jurisdictions, the unification of EU space policy is a promising development that should benefit the space industry by fostering legal certainty and operational efficiency.

HFW can assist with navigating the different legal frameworks applicable to your business activities. Please speak to your usual HFW contact or the authors of this article for more information.