New Space, in search of an advanced and futuristic law
The modernization of the aerospace sector and the proliferation of private companies require updated regulations that support innovation and growth, without holding back the potential of this expanding industry.
Experts: Laura Cadenas, partner of the asset financing group at Watson Farley & Williams; Efrén Díaz, Secretary General of the Spanish Association of Aeronautical and Space Law (AEDAE) and head of the Technology and Space Law areas at the Bufete Más y Calvet; Esther Riobó, head of regulatory affairs at Hispasat; and Rafael Harillo Gómez-Pastrana, director of Stardust Consulting and member of the Board of Directors of the Spanish Association of Aeronautical and Space Law (AEDAE).
by julia gil
Space tourism, the implantation of solar panels in orbit, space mining or even the deployment of satellite constellations. Sounds like science fiction, doesn’t it? Well, it’s not. Aerospace is no longer just about astronauts and government projects. The growing relevance of space technologies in everyday life, from telecommunications to environmental monitoring, has led to a boom known as New Space.
According to the 2022 Activities Report made by the Spanish Association of Defence, Security, Aeronautics and Space Technology Companies (TEDAE), the aerospace sector reached a turnover of 1,065 million euros in 2022. Moreover, as Jorge Potti, vice president of the Space sector explains in the report, the goal is to achieve 1,500 million euros between 2022 and 2027, the highest value ever recorded by Spain. However, the modernization of the industry and the rise of private companies in the sector demand an updated regulation. Innovation, growth and competitiveness demand a law that accompanies progress without slowing down the potential of this expanding industry.
CURRENT REGULATIONS
In Spain, the regulation of the space sector, in addition to aeronautical regulations, is based on a set of national standards and international treaties that belie the idea of the absence of a clear regulatory framework governing the sector and its activities. As Laura Cadenas, a partner in Watson Farley & Williams’ asset finance group explains, “there is no legal vacuum.” At the national level, these specific rules-explains Efren Diaz, secretary general of the Spanish Association of Aeronautics and Space Law (AEDAE) and head of the Technology and Space Law areas of Bufete Más y Calvet. – The law firm’s legal practice covers aspects such as the launching of space objects, space debris management and sustainability in space,” says Díaz.
CREATION OF UPDATED REGULATIONS
Although Spain has basic regulations in the space sector, experts agree on the need for an updated and specific regulation, capable of responding to the rise of the private space industry and technological advances. According to Cadenas, the current regulation comes from “a context of a superpower space race”, an agreement between Russia and the United States, at an early stage and, therefore, although it fulfils certain functions, many of its aspects are “outdated”. Given the exponential growth of activities such as the launching of commercial satellites, space tourism and mining, which “have exceeded the forecasts of current regulations”, according to Efrén Díaz, an updated legislation should address several fronts. Among them, he highlights the deprivation of space, the regulation of commercial exploitation and sustainable management of Outer Space, legal clarity in licenses for new activities, and legal liability in case of space incidents.
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