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Space Sector: Changing Dynamics with Inclusion of Private Players

Space, as a commercial sector has been largely unexplored by the private players, which engulfs a huge latent potential for economic development and various new dimensions of growth. It can play a huge catalytic role in technological advancement and expansion of our industrial base. With this very objective in mind, the government also approved the creation of Indian National Space Promotion and Authorization Centre (IN-SPACe) in 2020, which aims to provide a level playing field for private companies to use Indian space infrastructure.

It will act as a single-point interface between Indian Space Research Organisation (ISRO), and everyone who wants to participate in space-related activities, or use Indias space resources. By the support of New Space India Limited (NSIL), it would endeavour to reorient space activities from a supply driven model to a demand driven one, thereby ensuring optimum utilisation of the nations space assets. The commitment is also visible in the Space Policy of India 2023 where the ISRO and its commercial arms under the aegis of Department of Space, endeavour for a greater integration along with more robust functioning.

Current Legislations and Potential Inadequacies

The concept of Space laws was introduced by Dwight D. Eisenhower in United Nations in 1957, in connection with disarmament negotiations. Currently, there exist several laws such as Outer Space Treaty (UN OST) 1967 or the 1972 Convention on International Liability for Damage Caused by Space Objects, which set out detailed rules regarding the recovery of damages for losses caused by space objects. But still international diplomacy continues to play an active role in the codification of acceptable space conduct, several issues remain the subjects of debate.

Because nations are prohibited from laying claim to space territories, for instance, there is a need to establish regulations governing the apportionment of usable resources that space may eventually provide. A method for determining the extent of each countrys control over the air above remains to be agreed upon. But the point of attention should be that majority of the laws already formulated, were enforced when the government dominated the space and inclusion of private entities could revolutionise it.

Scope and Benefits of Inclusivity

Driven by economic factors like lower launch costs and a burgeoning space economy, these players are injecting innovation and competition. From established giants like SpaceX to nimble startups, private companies are making their mark in diverse areas. The introduction of reusable rocket technology by SpaceX has not only reduced the cost of space exploration (opened up new possibilities for private companies and has also benefited the environment by reducing the overall emissions and debris.

This influx of private entities is transforming space exploration, posing both exciting opportunities and challenges that demand new regulations and international cooperation. Recognizing the beneficent possibilities of a private company's role in space exploration, the government of India has also included provisions in its Indian Space Policy 2023 which promotes their growth. The policy is encouraging the Non-Governmental Entities in the sector to undertake end to end activities through establishment and operation of space objects, ground-based assets and related services, such as communication, remote sensing, navigation etc.

The Indian government has also announced 100% Foreign Direct Investment in the satellite sector aligning with the global trends as evident with liberalisation taken up by countries like China and European Union. Therefore, they are not only transforming space exploration but are also contributing to the evolution of space laws and policies.

A Road Full of Challenges
The laws and treaties related to space regulation were framed predominantly from a state-centric perspective as mentioned earlier.

The same is expressed in Article VI of the UN OST:

States shall be responsible for national space activities, whether carried out by governmental or non-governmental entities. Being under continuous contention, this article is said to act as restraint on the activities of private companies as they are under strict government surveillance. This is done to avoid any international liability imposed on the government due to damage or harm caused by private companies activities. Therefore, space activities are subject to both national and international regulations.

Adhering to these regulations, which can vary across different jurisdictions, requires strenuous efforts. The companies are also facing setbacks related to environmental impact, safety, and potential interference with astronomical observations. In April 2023, during the inaugural flight of SpaceX's colossal starship rocket, there was a mishap that led to its explosion. Due to this, thousands of pieces of debris were dispensed into the atmosphere. The federal aviation administration was sued by environmentalist pressure groups and a Texas tribe for not conducting an environmental review of the launch.

The privatization of the space industry has raised concerns about the extraction of space assets by private companies since the 1980s. As laid out in Article II of the UN OST, outer space is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means. The current laws and treaties lack legislation and thus create a regulatory gap and legal ambiguity in interpretation regarding the regulation of private resource mining in space.

On April 30, 2020, NASA granted a joint contract to three private space companies to complete a lunar mission by 2024. Although this development was celebrated and widely covered, the regulatory gap was overlooked. The OST lacks definitive regulations for addressing incidents in space that involve private companies. For example, in 2019, Beresheet, a privately funded Israeli spacecraft, crashed on the moon. There have been considerable technological and military changes since the Outer Space Treaty was established. These challenges highlight the need for new treaties to keep pace with these advancements.

Potential Attempt at Overhaul and a Solution

With the increasing commercialization of space activities, the laws and treaties are being altered and shaped accordingly. In 2020, the Artemis Accord, a set of bilateral agreements was released by NASA. As of 2023, a total of 23 countries have signed these bilateral agreements. These accords aim to establish a practical set of principles to guide the civil exploration and use of outer space. This will lead to increased efficiency as well as the promotion of sustainable and beneficial use of space. The Accords represent a political commitment to the principles described herein, many of which provide for operational implementation of important obligations contained in the Outer Space Treaty and other instruments.

However, the Artemis accords are not legally binding. Efforts are underway within the UN COPUOS to develop new space law principles specifically addressing private activities. Individual nations like USA are also taking attempts at resolution which is exemplified by their efforts to address space debris through the establishment of the Federal Orbital Debris Advisory Committee (ODAC). Located at the Johnson Space Center, the Office continues to develop an improved understanding of the orbital debris environment and measures that can be taken to control debris growth. Although significant these are not sufficient, a collective effort such as the establishment of an international body is imperative to regulate and carry out an overhaul regarding the working of the sector.

Conclusion
Although, legislations like Artemis Accords and offer a promising scenario, there is a long way to cover. Existing treaties need to be re-examined and updated to explicitly address private space activities. Clarifying issues like resource extraction rights, debris management protocols, and liability attribution are essential. Regulatory bodies within individual countries should work towards standardized licensing and permitting processes for private space ventures. This collaborative effort, with clear guidelines and a focus on sustainability, will unlock the true potential of space exploration, benefitting all of humanity.

References:
  1. https://www.drishtiias.com/daily-updates/daily-news-analysis/private-sector-participation-in-space
  2. https://www.britannica.com/topic/space-law
  3. https://outerspacetreaty.org
  4. https://www.nasa.gov/wp-content/uploads/2022/11/Artemis-Accords-signed-13Oct2020.pdf
  5. https://orbitaldebris.jsc.nasa.gov/



Award Winning Article Is Written By: Mr.Yash Raj & Ms.Astha Shivhare
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