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International space law and the basis of space regulation

Space law has its origins in the treaties and principles established by the UN Committee on the Peaceful Uses of Outer Space (COPUOS), a committee set up following the Soviet Union鈥檚 1957 launch of the world鈥檚 first ever satellite, 鈥楽putnik鈥�. As early as 1962, the first set of principles on outer space was agreed, adopted by the UN General Assembly as the 鈥淒eclaration of Legal Principles鈥� for space activities. These principles were elaborated upon in the UN Outer Space Treaty of 1967 and in subsequent UN treaties, resolutions, and principles. Currently, over one hundred states are party to the Outer Space Treaty.

For regulators, the most salient points of the UN space treaties are that:

• the use of space must be exclusively for peaceful purposes
• space must be accessible to all countries and used for the benefit of all countries
• each state is internationally responsible and liable for its space activities, including activities carried out by non-governmental entities of that state
• each state must authorise and continuously supervise the space activities of its non-governmental entities
• each state must maintain a register of space objects it launches and furnish details regarding the orbital parameters and basic function of the space object to the UN
• each state must, in conducting, authorising, or supervising its space activities, avoid harmful contamination of outer space

States have often sought to secure compliance with their international obligations by introducing national legislation and regulations. Typically, national legislation confers licensing or authorisation powers on the state. The state then uses these powers to determine the requirements a licensee has to meet and to set out the obligations of each licensee.

Overview of the Outer Space Act 1986 and the Space Industry Act 2018

The Outer Space Act 1986

Prior to the enactment of the Space Industry Act 2018, space activities carried out in the UK or by UK entities overseas were governed by the Outer Space Act 1986. This required entities who procured an overseas launch and/or operated a satellite in orbit to hold a licence. The UK has a well-established and globally respected licensing regime for these activities.

Going forward, the Space Industry Act 2018 and Regulations and Rules made under that Act will regulate spaceflight and associated activities carried out in the UK.

The Outer Space Act 1986 will continue to regulate activities carried out overseas by UK entities, including:

• the procurement of the overseas launch of a space object
• the operation of a satellite in orbit from an overseas facility by a UK entity

The Space Industry Act 2018 and Associated Regulations

The created the high-level framework to enable launches to take place from the UK from the early 2020s.

This piece of primary legislation sets out a high-level enabling framework for commercial spaceflight operations, and the , the ; the ; and the all provide the detailed provisions required to implement the Act.

The Space Industry Act 2018 regulates activities carried out in the UK, including:

• launch (space or sub-orbital) and return
• the procurement of a UK launch (space or sub-orbital)
• the operation of a satellite in orbit
• the operation of a spaceport
• the provision of range control services

If a ship has a British flag then the Space Industry Act 2018, rather than the Outer Space Act 1986, will regulate spaceflight activities such as launch from the ship irrespective of the nationality of the operator or the waters from which launch is to take place.

The US-UK Technology Safeguards Agreement (TSA),鈥痺hich鈥痚stablishes鈥痶he principles under which US spaceflight technology may be licensed for export by the US authorities to the UK for use in spaceflight activities, is also implemented through the Space Industry Regulations 2021.鈥�

Insurance requirements and liabilities for operations licensed under the Space Industry Act 2018 and Outer Space Act 1986

Background

The 1972 UN鈥�鈥�(鈥渢he Liability Convention鈥�), which the UK has ratified, is the foundation for space liability regimes worldwide. Under the Convention, a 鈥淟aunching State鈥� is internationally liable for damage arising out of its space activities to i) objects owned by nationals from another state, and ii) nationals of another state.

A Launching State is defined in Art. I of the Convention as:

• a State that launches or procures the launching of a space object
• a State from whose territory or facility a space object is launched

There can be, and often is, more than one Launching State.

Damage caused on the surface of the Earth or to an aircraft in flight carries absolute liability. (Art. II)

For damage caused elsewhere and to a space object, the Launching State is liable 鈥渙nly if the damage is due to its fault or the fault of persons for whom it is responsible鈥� (Art. III).

The Convention has significant implications for how states regulate space activities, and many states have sought to manage or offset some of their liability for non-governmental space activities. Typically, this is done by minimising the risk of a collision or third-party damage in the first place (through a state鈥檚 licensing and compliance procedures); by requiring an indemnity from licensees for claims presented to the state; and by requiring a minimum level of third-party liability insurance cover as a condition of the licence, to better protect both the operator and the Government of that state from such claims.

The UK鈥檚 liability and indemnity regime for spaceflight activities

Outer Space Act 1986

Under section 10 of the Outer Space Act 1986 (OSA), operators must indemnify the UK Government for claims brought against the latter other than in circumstances set out in that section.

All licences issued under the Outer Space Act 1986 must state a limit to the operator鈥檚 liability to indemnify UK Government for claims made against the latter. Further detail on how this is calculated is set out below.

Space Industry Act 2018 and Space Industry Regulations 2021

The Space Industry Act contains provisions on insurance () and an operator鈥檚 indemnification requirements (鈥痑苍诲 ). There are also powers in the Act to limit operator liability under and through regulation making powers in .

Ministers have that all operator licences issued under the Space Industry Act 2018 will contain a limit of operator liability with respect to claims made under both section 34 and section 36 of the Act.

Operators will鈥痶herefore鈥痭ot be facing unlimited liability for actions carried out in compliance with the Space Industry Act and licence conditions.鈥�

, , and of the cover on liabilities:

• persons who do not have a strict liability right of claim under
• that a limit on an operator鈥檚 liability to third parties under section 34(2) and any other third-party liability not covered by section 34(2) must be included in an operator鈥檚 licence
• cases in which limits of operator liability are disapplied

Further background on these provisions can be found .

Third-party liability insurance requirements and limits of operator liability for activities licensed under the Outer Space Act 1986 and the Space Industry Act 2018

This section sets out the third-party liability (TPL) insurance requirements and operators鈥� indemnification obligations for licences issued under each Act. The nature of the requirements is set out below with respect to both Acts.

Orbital Operations

Outer Space Act 1986

Orbital operations outside of the UK have a 鈧�60 million insurance requirement/indemnity limit for standard missions. This may be higher for higher risk missions.

The insurance requirement may be waived for low-risk missions (but the 鈧�60 million indemnity obligation remains).

An 鈥榓ny one occurrence鈥� approach and 鈥榓ggregate鈥� amounts are to be determined by the regulator as appropriate.

Space Industry Act 2018

Orbital operations will follow requirements set out by the Outer Space Act 1986.

Launch Operations

Outer Space Act 1986

Procuring a launch outside the UK will be regulated by the OSA. 鈧�60 million insurance will be required when procuring a launch outside of the UK.

Space Industry Act 2018

Launch from the UK will be regulated by the SIA.

Insurance requirements and limits of launch operator liability for launch from the UK (and the orbital operator for procuring a launch from the UK) will be calculated using the Modelled Insurance Requirement.

Note: Insurance requirements for upper stages remaining in orbit, and for planned re-entry of satellites and upper stages is to be confirmed

More detailed guidance on the insurance requirements and indemnification arrangements under both Acts can be found at the . This includes further background on how the Modelled Insurance Requirement is calculated for launch activities licensed under the Space Industry Act 2018.

Further enquiries

Any further enquiries on licensing under either the Space Industry Act 2018 or the Outer Space Act 1986 should be directed to commercialspaceflight@caa.co.uk.

Liability and insurance review鈥�

Work is underway to assess the key points raised by respondents to the consultation on liability and insurance requirements. The review is considering:鈥�

• development of an alternative model to traditional insurance to address issues around current insurance鈥痯rovision for small satellites鈥�
• lowering the limit of operator liability for in-orbit operations鈥�舛膵
• including a maximum limit of insurance for the launch MIR鈥�舛膵
• use of alternatives to insurance as forms of security to meet an operator鈥檚 liability obligations (e.g.鈥痙ecommissioning bonds, escrow accounts, performance and surety bonds).鈥�

The government will engage further with the space sector as the review progresses and will report its review findings once the review is complete.

Satellite Licence Fees鈥�

Background

Licence fees under the Space Industry Act 2018

The Civil Aviation Authority is responsible for the charging of fees for licences issued wholly under the Space Industry Act 2018. The current fee for a single orbital application under the Space Industry Act 2018 is 拢6,500.

Licence fees under the Outer Space Act 1986

The UK鈥疭pace Agency is responsible for the charging of fees for licences issued wholly under the Outer Space Act 1986. The current fee for a single orbital licence application under the Outer Space Act 1986 is 拢6,500.

Licence fees under the Outer Space 1986 and the Space Industry Act 2018

The UK Space Agency is also responsible for the charging of fees for licences issued jointly under the Outer Space Act 1986 and the Space Industry Act 2018, referred to as a 鈥榖undled licence鈥�.

For example, where a UK company procures an overseas launch for a satellite which they intend to operate from the UK, a 鈥榖undled licence鈥� would be issued, referring to the OSA to authorise the procurement of an overseas launch by a UK national, and referring to the SIA to authorise the operation of the satellite from the UK.

A single fee of 拢6,500 would apply to a 鈥榖undled licence鈥�.

Current fee exemption

Recognised educational institutions carrying out activity for scientific research or teaching under the Outer Space Act 1986, or jointly under the Outer Space Act 1986 and Space Industry Act 2018, are currently exempt from the 拢6,500 fee (subject to meeting criteria).

The Space industry regulations consultations set out the UK Space Agency鈥檚 plan to replace this fee exemption with general fee waivers, which will be applied on a case-by-case basis where appropriate. Further information will be provided in due course.

Guidance on satellite fees for constellation operators

The Guidance on Satellite Licence Fees sets out the refund scheme under the Outer Space Act 1986 and Space Industry Act 2018 that constellation operators may be eligible for, subject to meeting its criteria. The scheme took effect from 1 April 2021.

Public consultations

In 2020, the Government ran two consultations to seek views on:

• the operability and effectiveness of the draft , ; and associated guidance and supporting documents (this consultation ran from 29 July 2020 to 21 October 2020)
• the government鈥檚 approach to liabilities, insurance and charging (October 2020)

The government published a single response to both these consultations in March 2021.

In 2021, the government ran another consultation seeking views on draft environmental objectives and guidance for the spaceflight regulator under the Space Industry Act 2018.