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Estonia gets a space law to boost tech innovation and business environment

Space

The purpose of the Estonian Space Act is to promote the sustainable development of the economy, science and technology and to ensure the safety and environmental sustainability of space activities. Photo: Pixabay

The Ministry of Economy and Communications sent for approval the draft of the space law, which develops the Estonian business environment and gives the private sector certainty to invest in Estonian space infrastructure.

According to Minister Erkki Keldo, the creation of the Estonian space law is an important step for every country investing in high technology: “The obligation of the space law to the state comes from international law, but each country can decide the exact focus of the law itself. Estonia has chosen a direction that supports technology entrepreneurship and innovation.”

The purpose of the Estonian Space Act is to promote the sustainable development of the economy, science and technology and to ensure the safety and environmental sustainability of space activities.

The Estonian Space Act regulates: the bases of space activities, requirements for the operator of a space object, the space activity permit procedure, registration and operation of a space object, the state’s right of recovery against the operator, the bases of the activities of the competent authority and state supervision of space activities.

New law creates possibilities for companies

The space missions of universities and students developed so far in Estonia have boosted the growth of technology entrepreneurship. “In order for the companies that grew out of the previous projects to grow in the space field and attract investments, clear rules related to permits and insurance must be established for all parties. With the new law, Estonia can ensure the sustainable behavior of its companies and research institutions in space. If an Estonian space object causes damage, it is possible to deal with these consequences legally,” added Keldo.

There are two technology companies in Estonia that are planning to put satellites into orbit in cooperation with the European Space Agency (ESA).

“With the new law, Estonia can ensure the sustainable behavior of its companies and research institutions in space.”
Erkki Keldo, Minister of Economy and Industry

According to the minister, this is a good prospect for Estonia’s economic growth, because Estonian companies create products and services with higher added value that cannot be quickly copied by others. The law creates conditions for the growth and development of technology and companies and mitigates the risks arising from operating in space. This is important, because besides countries, companies are also increasingly developing space activities.

European countries are starting their space legislation

The Space Act is currently in force in twelve European Union member states, the rest of the EU countries are starting their space legislation. The timing of the creation of Estonia’s space law fits well with the current debate in Europe on the legislation regulating the space sector of the EU, in which Estonia also contributes.

According to the UN Outer Space Treaty, which deals with the principles of action of states in the exploration and use of outer space, including the Moon and other celestial bodies, space objects are the responsibility of their countries of origin. According to the agreement, the state must start regulating the space sector when the private sector starts operating in space.

The Outer Space Treaty and the activities of the private sector have created the need to regulate space activities in Estonia and to take them into account in national legislation. As a country, it is important for Estonia to ensure the sustainable development of the space industry and to avoid situations that could cause damage to the country or companies operating here. The clear regulation shows Estonia’s responsible behavior internationally and its desire to cooperate in the field of space.

According to the draft, the Estonian Space Act will enter into force on January 1, 2026.

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