On 25 June 2025, the European Commission (Commission) released a draft proposal for a Regulation on the safety, resilience and sustainability of space activities in the Union (European Union (EU) Space Act).
The proposal responds to the rapid growth of commercial space activities globally. It seeks to create a unified regulatory framework for space-related activities across the EU. If implemented, the EU Space Act will replace the patchwork of national space laws currently in place in 13 of the EU’s 27 Member States, as well as the space laws still being developed by several other Member States. It will also have extra-territorial effect.
This article provides an overview of the EU Space Act and outlines the next stages in the legislative process. It also highlights the implications for Australian space businesses and sets out steps they should consider taking now to prepare.
What is the EU Space Act?
The proposed EU Space Act takes the form of a ‘Regulation’, not a ‘Directive’. This distinction matters because a Regulation will apply directly and uniformly across all EU Member States. If the Act were framed as a Directive, each Member State would need to pass its own national legislation to give effect to the EU’s objectives as set out in the Directive, leading to possible differences in implementation and enforcement across the EU. By choosing a Regulation, the EU is seeking a consistent approach to the regulation of space activities across the Union.
The EU Space Act sets rules for the establishment and operation of space-based data and space services within the EU market. These cover:
Authorisation, registration and supervision of space activities.
Orbital traffic management, through the provision of collision avoidance services.
Cyber security and risk management for space infrastructure.
Governance and enforcement measures.
Supporting measures including developing guidance materials, information sharing portals and a ‘Union space label’ framework.
Why does it matter for Australian businesses?
One of the most significant aspects of the draft Act is its extra-territorial reach. The EU Space Act will apply not only to EU operators but also to ‘third country’ space operators – including Australian companies and Australian government entities – that provide space-based data or space services in the EU or to EU users.
In practice, an Australian business offering satellite connectivity, Earth observation or launch services from Australia to EU entities, or other space-based applications within the EU market, will likely fall within the scope of the Act.
Registration obligations
Australian entities intending to operate as ‘third country space operators’ will need to:
Register in the Union Register of Space Objects (URSO) – managed by the Union Agency for the Space Programme (Agency) and obtain an e-certificate. This is required to provide space services to EU space operators in relation to EU-owned assets.
Registration is achieved by either:
An evidenced application demonstrating compliance with the requirements in the Act.
Being from a third country for which the Commission has adopted an equivalence decision – similar to the approach adopted by the EU to the GDPR ‘adequacy decision’ – meaning that the country has comparable legal and supervisory frameworks.
A Member State being granted a derogation to register a third country launch operator which does not otherwise satisfy the Act’s requirements, based on satisfying public interest conditions:
there is no readily available EU substitute or realistic alternative to the launch services provided by the third country launch operator
the launch services provided by the third country launch operator promote capabilities of strategic importance for the EU or Member States.
Australian government entities are treated as ‘third country public entities’ and are subject to an additional security review before registration will be granted.
Appoint an EU-based legal representative as the first point of contact for EU authorities, the Commission and the Agency on all matters related to compliance with the EU Space Act.
Compliance obligations
Once registered, Australian operators will be required to comply with the same safety, resilience and sustainability requirements as EU operators. Depending on the type of space activity being undertaken this may include:
Safety: Implementing technical and operational controls to meet a wide range of EU safety and sustainability standards and requirements. These include justifying their choice of orbit, managing collision risks (especially for large constellations), subscribing to approved collision avoidance services, reporting key contacts for high-risk events, applying for mission extensions in advance, implementing debris mitigation and disposal plans, ensuring manoeuvrability above 400 km and limiting light and radio pollution to protect astronomy.
Resilience: Managing cyber security and physical infrastructure risks in proportion to their size and mission profile by conducting ongoing risk assessments, monitoring for incidents, implementing cyber security and continuity measures, preparing crisis communication plans, training staff and managing supply chain security.
Sustainability: Calculating the environmental footprint of space activities and submitting an Environmental Footprint Declaration (EFD).
Australian third country space operators would be subject to EU oversight and enforcement powers, including investigations, inspections and penalties of up to 2% of global annual turnover for non-compliance.
Legislative process and timing
The Commission submitted the proposal to the European Parliament and Council – the first step in the ordinary legislative procedure of the EU. An eight-week public consultation process opened on 15 July 2025 and will close on 8 October 2025 (subject to extension until the text is available in all EU languages).
All feedback received through the consultation will be summarised by the Commission and provided to Parliament and Council to consider in their review of the proposal. Feedback can be submitted here.
If adopted in its current form, the EU Space Act would apply from 1 January 2030.
What should Australian space businesses do now?
If your organisation provides – or plans to provide – space-related services to the European market, it is important to:
Assess whether your planned business activities post-2029 will be captured by the EU Space Act.
Monitor the legislative process and likely compliance deadlines and any movement toward an Australian equivalence decision.
Prepare early by reviewing internal systems, documentation and contracts, then develop and implement compliance strategies to meet emerging regulatory requirements and address any potential gaps.
We will continue to track the EU Space Act’s progress and would be happy to discuss its potential impact on your business operations or investment plans in the space sector.