Modernising space liability: comparative analysis of the UN Space Liability Convention and Indian government policy
Wednesday 11 December 2024
Vikrant Rana
SS Rana & Co, New Delhi
vikrant@ssrana.com
Shantam Sharma
SS Rana & Co, New Delhi
shantam@ssrana.com
The Convention on International Liability for Damage Caused by Space Objects 1972[1] (the ‘UN Space Liability Convention’) is a pioneering framework designed to address potential damage caused by space activities. However, with the rapid pace of technological advancements and the increasing involvement of private companies in space, the Convention has become somewhat outdated. Initially created for an era dominated by state-led missions, the Convention now struggles to address the complexities introduced by modern space ventures.
India, emerging as a significant player in the global space arena, exemplifies this shift. In 2020 the Indian space sector[2] was valued at US$9.6bn, contributing two to three per cent of the global space economy. By 2025, this sector is expected to grow to US$13bn, with aspirations to capture close to ten per cent of the global space economy by 2030. Recognising these changes, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) published the Norms, Guidelines and Procedures for Implementation of the Indian Space Policy 2023 in respect of Authorisation of Space Activities (NGP),[3] focusing on liability as a critical aspect.
Comparing the UN Space Liability Convention and the NGP
Scope and coverage
Aspect | UN Space Liability Convention | The NGP |
Applicability | Applies to states that launch or procure the launching of space objects. | Applies to both Indian and non-Indian entities launching space objects from Indian or foreign territories. |
Definition of 'space objects' | Covers any object launched into outer space, including component parts. | Explicitly covers sub-orbital and orbital launches and includes re-entry phases. |
The NGP expands the scope beyond state actors to include private entities and explicitly covers both sub-orbital and orbital launches, addressing gaps in the UN Space Liability Convention regarding modern space missions.
Liability framework
Aspect | UN Space Liability Convention | The NGP |
Liability | Absolute liability on Earth. Fault-based liability in space. | Requires third-party liability insurance, with specifics determined by IN-SPACe. |
Compensation mechanism | States responsible for compensation claims. | Launch operators must maintain third-party liability insurance, with caps and terms set by IN-SPACe. |
The NGP introduces third-party liability insurance, ensuring financial coverage for damages and moving beyond the state-centric compensation mechanism in the UN Space Liability Convention.
Enforcement and jurisdiction
Aspect | UN Space Liability Convention | The NGP |
Dispute resolution | Relies on diplomatic channels and arbitration. | Specifies third-party insurance to handle claims, but does not detail dispute resolution processes. |
Jurisdiction | Primarily state-based jurisdiction. | Addresses jurisdiction through contractual clauses with non-Indian entities. |
While the NGP attempts to clarify jurisdiction through contractual obligations, detailed mechanisms for dispute resolution are lacking, which means that this is an area that remains a challenge for both frameworks.
Responsibility and accountability
Aspect | UN Space Liability Convention | The NGP |
State responsibility | States are responsible for national activities in space. | Requires third-party liability insurance and includes the government as an insured entity. |
Registration of space objects | Requires states to register space objects. | Specifies registration guidelines and responsibilities, including for non-Indian entities. |
The NGP strengthens accountability by mandating third-party insurance and detailed registration procedures, enhancing the traceability of and responsibility for space objects.
Technological and operational changes
Aspect | UN Space Liability Convention | The NGP |
Technological advances | Based on 1970s technology and understanding of space activities. | Addresses modern scenarios including private launches, insurance requirements and space debris mitigation. |
Operational scale | Focused on state-led missions. | Includes guidelines for private and commercial missions, both domestic and international. |
The NGP is more adaptable to modern technological advances and operational scenarios, providing a framework that is relevant for contemporary space activities.
Conclusion
The Indian government’s policy guidelines on liability for space objects address several shortcomings of the UN Space Liability Convention, particularly in terms of financial preparedness and its relevance to the modern world. The introduction of mandatory third-party liability insurance ensures that there are adequate financial resources to cover damage and the detailed registration procedures aim to enhance accountability and traceability.
The strengths of the NGP include:
modern relevance: the guidelines address contemporary technological advancements and the operational realities of private and commercial space missions; and
enhanced accountability: by including both Indian and non-Indian entities and specifying the registration and liability transfer procedures, the guidelines clarify important areas of responsibility.
The outstanding areas for improvement in regard to the NGP include:
dispute resolution: a detailed framework for dispute resolution is needed to handle complex liability cases effectively;
consistency and enforcement: the discretionary power given to IN-SPACe may lead to inconsistencies. Clear, standardised procedures should be established; and
periodic updates: the guidelines should be regularly updated to keep pace with the fast-evolving space industry and technological advancements.
India’s proactive approach to updating its space liability policies sets a positive precedent for other nations. By addressing the gaps in the UN Space Liability Convention, India’s guidelines ensure that there is a robust framework in place for managing space activities in an era when the commercial space sector is booming. With continuous improvements and updates, India is well-positioned to lead in the global space economy, balancing innovation with responsibility.