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Space Startups and Sustainability: Tackling the $45 Billion Opportunity with a Debris-Free Orbit

The increased interest and governmental support in privatizing the space sector has led to a surge in the number of entrepreneurs looking to make a name in the Indian space industry that is looking to expand to USD 45 billion in the next decade. The advancements in technology and availability of cheaper raw resources has allowed new startups to emerge in activities ranging from establishing satellite constellations which promote global internet coverage to ambitious lunar and asteroid mining projects. However, this rapidly increasing space activity brings with it a critical challenge: space debris. There are several international regulations to monitor space activities which put liability on nations and startups both. However, national regulatory framework is lagging behind. The question of who bears liability for the increasing amounts of debris in Earth’s orbit is a real concern for all stakeholders as we move towards a more deregulated space sector.

The Space Debris Challenge

Space debris is an umbrella term used for collection of defunct satellites, removed rocket engines, and fragments from collisions/explosions in the Earth’s orbit. As per the latest data, over 36,000 objects larger than 10 cm are currently floating in Earth’s orbit, with millions of smaller fragments posing risks to active satellites and spacecraft. Even a small piece of junk traveling at orbital velocities (up to 28,000 km/h) can cause catastrophic damage to satellite and other tech’s operational requirements. The issue is not just operational but also legal and ethical: who will bear the consequences for losses caused from space debris?

International Legal Framework for Loss from Space Debris

As we have discussed in our previous articles, the foundational framework for liability arising from space activity includes Outer Space Treaty (1967) and the Liability Convention (1972). The essential two qualities are:

1. State Responsibility: Every country is responsible to the other nation to whom damage is caused by the former country’s governmental or non governmental space activities.

2. Absolute Liability: Launching states are absolutely liable for any damages caused on Earth or to aircraft in flight,. However, liability for damages in space is fault-based, meaning a party must prove negligence or intent to hold another responsible for collisions with space debris.

These frameworks put significant pressure on national governments to ensure high competency and quality in space activities, otherwise, huge liabilities could be imposed on the nation.

The Role of Space Startups

It is important to note that states can seek damages from the ultimate private parties who have caused loss to foreign nations. In view of this, it is important for startups to take all necessary steps to limit their liability for any losses arising from their space debris:

1. Compliance with Regulations: To limit liability, it is important for startups to adhere to national as well as international obligations.

2. Insurance: As the space insurance industry involves, national startups often must have protective insurance to cover potential liabilities. The premiums which are currently high, might see some change in the upcoming years as more companies enter the space insurance sector.

3. Innovation in Debris Mitigation: Many startups are developing technologies to address the debris problem, such as active debris removal (ADR) systems, collision avoidance software, and self-destructing or biodegradable satellite components. Furthermore, ISRO has also developed Collision Avoidance (COLA) analysis and Space Object Proximity Analysis (SOPA) for safeguarding of its space assets.

Regulations in International Jurisdictions

1. USA: The United States of America released the National Orbital Debris Mitigation Plan in 2022 which mandates companies to adhere to internationally accepted standards like the Orbital Debris Mitigation Standard Practices (ODMSP). Startups are obligated to limit debris creation during normal operations, avoid intentional debris generation, and ensure post-mission disposal within 25 years for low Earth orbit (LEO) satellites. They must implement collision avoidance systems and coordinate with relevant agencies for tracking and space situational awareness.

2. Europe: The updated European Space Agency policy on debris mitigation came into effect in November 2023,which is guided by the IADC Guidelines, and ISO 24113 standards. Similar to USA, startups are required to take actions such as limit in-orbit debris generation, avoiding intentional debris release, and ensuring post-mission disposal by deorbiting satellites within 25 years or relocating them to a graveyard orbit. Satellites must be designed for end-of-life deactivation and safe atmospheric re-entry. Adherence to these policies is essential for licensing, funding, and participation in European space programs.

Regulations on similar lines have also been brought by countries like Japan, China and Russia.

Indian Perspective

Following the global cues, India has launched the Debris-Free Space Missions (DFSM) initiative in April 2024. The initiative aims to ensure that all Indian space missions, both governmental and non-governmental, achieve zero debris by 2030. The initiative follows best practices taken from Inter-Agency Space Debris Coordination Committee (IADC) Space Debris Mitigation Guidelines, United Nations Guidelines for the Long-term Sustainability of Outer Space Activities (LTS Guidelines) and ISO 24113: Space Systems – Space Debris Mitigation Requirements.

Key guidelines include preventing debris generation during satellite operations and post-mission disposal, ensuring high reliability to avoid collisions and break-ups, and complying with strict post-mission disposal protocols. By 2030, all missions will account for human spaceflight safety, satellite trackability, and collaboration on space debris monitoring. The DFSM will be implemented in 2025 through mission planning, orbital slot selection, and fuel budgeting. Progress will be monitored annually, with ISRO’s IS4OM system overseeing the initiative’s implementation, reinforcing India’s commitment to global space sustainability.

Conclusion

The rapid growth of the Indian space sector is a double-edged sword. While it drives innovation and accessibility, it also amplifies the risk of space debris. Startups and for that matter, even governments must balance their ambitions with the responsibility to ensure long-term sustainability of orbital environments. India has already made a great effort to reduce space debris by launching its 2024 initiative. As we look forward to a USD 45 billion space economy, detailed guidelines and regulations will result in holistic development of the space sector.

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