The proposals from the UK Space Agency follow a review into the
UK’s approach to setting the amount of an operator’s liability in
licences for orbital operations, a key commitment of the
government’s National Space Strategy. The consultation on the
proposals focuses on how the government intends to implement its
new approach to setting variable limits of liability to support
the needs of satellite operators.
The proposal is to adopt the new variable approach with different
amounts of liability for different missions - as opposed to the
current ‘one-size-fits-all’ approach of a flat-rate amount of €60
million. The consultation is also seeking views on refunding
licence fees for companies that commit to sustainable practices -
reflecting the importance of keeping space safe and secure for
current and future generations.
, Minister for Space at
the Department for Science, Innovation and Technology, said:
The Space & Satellite sector is delivering huge benefits to
us all – from high-speed internet to monitoring climate change –
but launching satellites is still too expensive, risky & hard
to finance.
That’s why as Minister for the Civil Space sector I’m reforming
the regulatory framework to give responsible satellite operators
better licensing, insurance and financing.
Today’s proposal to adopt a flexible new liabilities
framework will help us grow the City of London as a global hub
for commercial satellite licensing, financing and insurance -
while incentivising companies to build sustainability into the
DNA of the new space economy.
Dr Paul Bate, Chief Executive of the UK Space Agency, said:
This consultation is an important step forward for the space
sector as the proposed changes will reduce the risks associated
with satellite operations and promote safe and sustainable
practices. This in turn will reduce insurance and regulatory
costs for operators, and support our work to catalyse investment
into the UK space sector by improving access to finance.
We want the UK to continue to be a world leader in space
sustainability which is why this consultation looks at ways to
encourage satellite missions to protect the space in which they
orbit.
Under the UK regulatory regime for satellite operations, each
licence granted to a satellite operator contains a designated
amount for the operator’s liability to cover costs arising if an
incident, such as a collision, involving their satellite were to
occur. Satellite operators are required by licence conditions to
insure themselves against these costs to meet their obligations
to indemnify claims made by third parties against either the UK
government or the operators themselves.
The consultation will also help inform government policy on a
range of areas relating to longer-term space sustainability.
Another of the key proposals in the consultation is for the UK
government to develop a space sustainability roadmap out to 2050
and beyond.
This would support the extensive work of the UK government and
the wider space sector on the issue of space sustainability. In
particular, the government is supporting the on-going work of the
Earth & Space Sustainability Initiative (ESSI).
ESSI is an industry-led initiative funded by the UK Space Agency
that is developing new sets of Space Sustainability Principles.
The aim is to support the establishment of global and transparent
Environmental, Social and Governance (ESG) Space Sustainability
Standards, which are recognised by the finance and insurance
communities and by policy makers around the world. Further
engagement with the insurance and finance sectors and the
development of the Standards is underway.
Joanne Wheeler, Director of ESSI, said:
The benefits we derive from space are too large to be undermined
by neglect for the space environment. The research being carried
out by ESSI will allow us to understand what space sustainability
looks like, how it can be evaluated in an objective way, and what
steps can be taken with the finance and insurance communities,
industry and stakeholders across the world to promote space
sustainability.
The changes proposed in the consultation contain measures which
could reduce the regulatory cost-burden to industry. The
consultation provides an update on the government’s assessment of
three possible alternative ways to insure an operator’s
third-party liability requirements set out in UK licence
conditions for orbital operations. This includes a proposal from
the Satellite Financing Network to establish a sector-led mutual,
which was provided in response to the call for evidence issued to
inform the liability and insurance review.
Following the end of the consultation, the government will issue
its response to the consultation to reflect the feedback received
and will implement the recommendations as soon as possible
thereafter.
The consultation is available for 12 weeks.
Read the consultation.
