“unparalleled expertise in all aspects of space and regulation and financing” Legal500 2021

Regulatory Briefing – March 2021

Europe UK Space Agency (UKSA) launches business support scheme United Kingdom On 19 February 2021, the UKSA announced a 10- BEIS launches consultation on designing a week Business Accelerator program offering free new domestic subsidy control system for virtual sessions to entrepreneurs and businesses in the UK the UK space sector. This includes companies which use in their business or are On 3 February 2021, the Department for Business, open to exploring expansion into the space sector. Energy and Industrial Strategy (BEIS) published a consultation on subsidy control: designing a new The scheme consists of two main strands: subsidy control approach for the UK (Consultation), following the end of the Brexit - a series of eight hour-long events covering transition period on 31 December 2020. topics including innovative business models, industry developments, future The Consultation sets out the Government’s aim to forecasting and entrepreneurial skills; and design a new subsidy control regime that: - a 10-week programme to help businesses establish a clear strategy to progress within - facilitates strategic interventions to the industry, through 90 days of targeted support Government priorities, including activity. supporting the COVID-19 economic recovery; UKSA publishes details on the UK’s Space - takes account of the economic needs of the Based Position, Navigation & Timing UK’s individual nations; (PNT) Programme - protects the UK’s competitive and dynamic market economy; and On 19 February 2021, the UKSA published - ensures that subsidies are given in line information on how the UK will undertake the with the UK’s international commitments Space Based PNT programme (SBPP) that was including those in the UK-EU Trade and announced in October 2020, which is intended to Cooperation Agreement, World Trade improve the resilience of UK critical national Organisation and Free Trade Agreements. infrastructure.

The Consultation seeks views on how the UK’s The SBPP will assess and recommend a preferred approach should be designed, including on: any option and delivery model for a UK PNT additions to the principles underpinning the programme, utilising cross-Government regime; the types of subsidies that should be experience and industry engagement through a considered; how policy impacts should be Request for Information that was published in assessed; and how the regime should be overseen October 2020. The results of this engagement are and enforced. being considered to inform an Outline Business Case (OBC) to be presented to Government. Responses to the Consultation will inform the primary legislation to establish the UK’s domestic The UKSA is looking for additional expert client- subsidy control regime. side support to develop this OBC and will release tenders to contract for this support, with contracts The deadline for responses to the Consultation is intended to run from April to August 2021. 23:45 (GMT) on 31 March 2021.

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“unparalleled expertise in all aspects of space and satellite regulation and financing” Legal500 2021

UK Government publishes Space Sector UK Government publishes response to COVID Support Plan Space Industry Regulations Consultations

On 25 February 2021, the UK Government On 5 March 2021, the UK Government published published its Space Sector COVID Support Plan the Space Industry Regulations Consultations: (Plan), developed by the Department for summary of views received and the Government’s International Trade (DIT) in collaboration with: response (Response), detailing the outcomes of the UKSA; BEIS; the Foreign, Commonwealth & the consultation on draft regulations to implement Development Office (FCDO), the Ministry of the Space Industry Act 2018 (SIA) that closed on Defence (MOD); and the Cabinet Office. 21 October 2020 and the consultation on draft insurance, liability and charging requirements to The Plan sets out the objectives and rationale for a implement the SIA that closed on 10 November series of proposed Government interventions to 2020. support the UK space industry to recover from the economic impacts of the COVID-19 pandemic. The Response notes that respondents were largely supportive of the regime and welcomed the The Plan aims to develop the space industry across flexibility offered to applicants in how they meet the UK through three key pillars as detailed below. regulatory requirements. It also notes that respondents identified the need for greater - Government coordination to: re-affirm alignment between requirements for different alignment of international commercial licence types and between the new regime under objectives and resources of DIT, UKSA, the SIA and the existing regime for orbital BEIS, FCDO and MOD; understand the activities under the (OSA). impacts of current export controls and trade barriers; revitalise cross-government The Response states that the following main co-ordination mechanisms; and adopt new clarifications and amendments will be made to the governance and delivery approaches. regulations and guidance: - Supporting exports and improving the accessibility of international markets, - clarifications around regulatory particularly for SMEs, through the launch requirements and terminology will be of the Space Sector Export Academy, with updated in the majority of instances the first cohort anticipated in 2021. identified by respondents; - Investment promotion through: the - a traffic light system will be introduced relaunch of the Leicester Space Park High under the SIA to give an early indication to Potential Opportunity to identify foreign licence applicants of whether they would direct investment opportunities; meet acceptable risk thresholds; development of UK-wide space ecosystems - the Government will arrange an additional through DIT’s regional networks and the plenary session to assist orbital operator UKSA-led space cluster development licence applicants to understand the initiative; and the use of “GREAT” relationship of the existing regime under branding to create new space-specific the OSA and new regime under the SIA; marketing materials. - safety requirements for and launch operator licences will be reviewed and combined in a revised Schedule 4, with new criteria relating to ‘human factors’; - the Government supports the need for spaceport and launch operator licensees to share relevant safety information but will not make the sharing of safety cases mandatory;

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- the requirements for launch rehearsals will be expanded; - further guidance will be provided on the European Commission presents Action licensing of launch activities from ships; Plan to improve synergies between civil, - the Regulations will be adjusted to clarify defence and space industries that precise information on payloads in launch operator licence applications is On 22 February 2021, the European Commission only required if the payload is known; (Commission) published an Action Plan on - the broad support for the charging Synergies between civil, defence and space proposals means that these will not be industries (Action Plan) to achieve the following changed at this stage, although the main goals: Government will look further at charging solutions for constellation operators and - to enhance the complementarity between provide details on this in due course; and relevant EU programs and instruments in - the Government will carry out a review of research, development and deployment to insurance and liabilities requirements in increase the efficiency and effectiveness of 2021 following a range of queries. investments; - to promote the economic and technological The Response states that the Government will dividends for EU citizens of EU funding for share the proposed licence application forms and defence and space research and orbital operator questionnaire over the coming development; and months. A committee will be established involving - to facilitate the use of civil industry industry and the regulator to keep the research and innovation in European regulations under review. defence cooperation projects.

Luxembourg The Action Plan is intended to make use of EU funding opportunities for exploring disruptive Luxembourg ratifies the Registration technologies with applications across civil, defence Convention and space industries, such as cloud, processors, cyber, quantum and artificial intelligence. On 27 January 2021, Luxembourg acceded to the United Nations Convention on Registration of The Action Plan contains eleven targeted actions to Objects Launched into Outer Space achieve these goals, which focus on: (), becoming the seventieth state to do so. - creating a framework for synergies between EU programmes and instruments As a party to the Registration Convention, and identifying critical technologies and Luxembourg will be required to establish a registry future capability requirements in order to of space objects and inform the United Nations develop technology roadmaps; Office of Outer Space Affairs of all registered space - supporting Small and Medium Businesses objects. and Research and Technology

Organisations including by setting up an

‘innovation incubator’ network; and

- preparing for the launch of three flagship

projects on: drone technologies; a space-

based secure connectivity system for all

European citizens based on quantum

encryption; and .

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The Commission will oversee the implementation contracting of goods and services of the Federal of the Action Plan, in cooperation with the Government for their operation. European Parliament and European Council. International United States The UK and Australia enter into ‘Space The White House issues Interim National Bridge’ partnership Security Strategic Guidance

On 23 February 2021, the UKSA and DIT entered

On 3 March 2021, the White House released the into the Space Bridge Framework Arrangement Interim National Security Strategic Guidance with the and Australian (Guidance) to provide guidance for US Trade & Investment Commission to create a ‘Space departments and agencies in advance of a National Bridge’ between the two countries to improve Security Strategy. access to trade, investment and academic research.

The Guidance states that the Administration will The Space Bridge is also intended to enable greater focus on science and technology research and policy dialogue and alignment and promote development investments and building digital innovative bilateral collaborations. infrastructure, including internet and 5G networks, with cybersecurity as a top priority. The agreement complements the Free Trade Agreement negotiations underway between the The Guidance also notes the importance of two countries and forms part of a shift by the DIT ensuring the safety, stability, and security of outer towards exploring collaboration opportunities in space activities. the Indo-Pacific region.

South America Russia and China announce plans for a joint lunar space station Brazil On 9 March 2021, the Russian space agency, Brazilian Government issues Decree and the Chinese National Space providing exemption from bidding process Administration (CNSA) signed a Memorandum of in cases which compromise national Understanding for the construction of the security International Lunar Research Station (ILRS), a joint research facility “on the surface and/or in the On 18 February 2021, the Government of Brazil orbit of the moon.” issued Decree No. 10,631, in relation to Article 24 of Law No. 8666 of 21 June 1993 which regulates The ILRS is described as a complex of government procurement. experimental facilities for multidisciplinary and multipurpose research work including lunar Decree No. 10,631 provides that purchases and exploration, lunar utilisation, scientific contracts for work or services are exempt from experiments and technology verification, with the bidding as part of the public tendering process prospect of a long-term unmanned operation and when disclosure of their location, need, ultimately a human presence on the moon. characteristics, specification or quantity endangers national security objectives and when Roscosmos and the CNSA announced that they will they are related to: intelligence; information and jointly develop a Roadmap for the creation of the communications security; cybersecurity; and the ILRS and will collaborate closely on its planning launch of space vehicles and the respective and development, as well as on the promotion of

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the project to the international aerospace community. Roscosmos and the CNSA have stated Joanne Wheeler MBE that the project will be “open to all interested Managing Partner countries and international partners.” [email protected]

Toby Ward Joanne Wheeler MBE Partner Managing Partner [email protected] [email protected]

Alex Monk Partner and COO [email protected]

Vicky Jeong Associate (admitted in New York) [email protected]

Joe Butler Paralegal [email protected]

Eleanor Winn Paralegal [email protected]

Patrick Selley Solicitor [email protected]

Jason Betteley Barrister [email protected]

Elizabeth Holden Solicitor [email protected]

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