Liability and insurance take center stage at first UN Space Debates

By:  Nana Appiah Acquaye

Questions surrounding liability, insurance, and the sustainability of the orbital economy dominated discussions at the inaugural UN Space Debates held during the 63rd session of the Scientific and Technical Subcommittee.

Participants delivered a clear message on the financial realities of operating in space, encapsulated in the warning that without insurance, space activities cannot proceed. The debate underscored growing concerns about how the global space ecosystem would respond if responsibility for damage caused by space debris could be definitively established.

The conversation drew attention to the economic implications of uncertainty in orbital incidents. Industry experts referenced recent satellite losses, including Inmarsat-6 F2 and Paz SAT NG, which resulted in claims valued at hundreds of millions of dollars. In both cases, investigators were unable to conclusively determine whether the damage was caused by human-made debris or natural particles.

Speakers noted that this persistent ambiguity has, for now, prevented major disruptions in the insurance market. However, they cautioned that a future incident clearly linked to space debris could trigger significant shifts. Potential consequences discussed included rising insurance premiums, stricter exclusions, and reduced insurability of certain orbital regimes.

Debris mitigation and removal also featured prominently in the discussions. Technical experts emphasized that active debris removal remains a complex engineering challenge. Safely approaching and capturing large defunct objects in orbit was described as feasible but not yet routine.

The need for improved situational awareness emerged as another critical theme. Panelists stressed that before large-scale debris removal can become viable, the international community must develop a shared and reliable understanding of the objects currently in orbit. Accurate tracking and data transparency were identified as foundational requirements.

From a commercial perspective, industry representatives argued that economic viability will depend on operational efficiency and international cooperation. The ability for a single debris removal mission to service objects associated with multiple countries was highlighted as a key factor in reducing costs and scaling activities.

Across differing viewpoints, participants converged on several guiding principles necessary for the evolution of space governance. These included enhanced transparency, robust information sharing, clear consent and authorization frameworks, and strong safety and oversight mechanisms.

The debates reflected a broader recognition within the space community that governance frameworks are not peripheral considerations but central enablers of market stability and long-term sustainability. The discussions signaled a shift from questioning the necessity of regulation to focusing on how and when effective governance structures should be established.