3 Space policy
(a)
(34737)
6950/13
COM(13) 108
(b)
(34738)
6952/13
+ ADDS 1-2
COM(13) 107
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Commission Communication: EU Space Industrial Policy: releasing the potential for economic growth in the space sector
Draft Decision establishing a space surveillance and tracking support programme
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Legal base | (a)
(b) Article 189(2); co-decision; QMV
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Documents originated | 28 February 2013
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Deposited in Parliament | 5 March 2013
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Department | Business, Innovation and Skills
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Basis of consideration | (a) EM of 8 April 2013
(b) EM of 18 March 2013
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Previous Committee Report | None
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Discussion in Council | (a) 30 May 2013
(b) Not known
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Committee's assessment | Politically important
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Committee's decision | Not cleared, further information requested
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Background
3.1 In its April 2011 Communication "Towards a space
strategy for the European Union that benefits its citizens"
the Commission set out proposals for a space policy and said a
specific industrial policy was necessary to deliver greater competitiveness
on the world stage, independence for specific sub-sectors such
as launchers and the development of the market for space products
and services. It made a case for establishing an independent space
situational awareness (SSA) capability based on new EU infrastructure.[9]
The documents
3.2 In this present Communication, document (a), which builds
on the areas highlighted in the 2011 Communication, the Commission
sets out five specific objectives for a space industrial policy:
- to establish a coherent and stable regulatory framework;
- to further develop a competitive, solid, efficient
and balanced industrial base in the EU and support SME participation;
- to support the global competitiveness of the
EU space industry by encouraging the sector to become more cost-efficient
along the value chain;
- to develop markets for space applications and
services; and
- to ensure technological non-dependence and an
independent access to space.
3.3 Underpinning these objectives are 37 specific
proposals divided into six work streams, as follows.
Improving framework conditions
3.4 The Commission asserts that with the expansion
of space activities it is necessary to ensure that there is an
appropriate regulatory framework in place. It believes that national
legislation alone will not ensure a coherent coverage of space
related legal issues and suggests that it may be necessary to
establish an EU space regulatory framework to exploit the potential
of an internal market for space.
3.5 The Commission sets out a number of areas
where action could be considered to improve so-called framework
conditions. These include:
- examining whether there needs
to be legislation on the production and dissemination of private
satellite data and potentially a Regulation on EU global navigation
satellite systems (GNSS) third-party liability;
- action at an EU level in relation to dual-use
export control;
- a need to ensure that there is sufficient radio
spectrum available for space operations;
- exploring whether commercial sub-orbital space
flights need an appropriate EU legal framework (either to better
guarantee passenger safety or to establish an innovation friendly
environment to facilitate this emerging market);
- pursuing the development of EU standards for
the space industry;
- supporting development of skills needed by the
space sector; and
- ensuring the EU space industry is taken into
account during trade negotiations to foster reciprocity and a
level playing field.
Supporting research and innovation
3.6 The Commission says that research, development
and innovation are not only key for space industrial competitiveness
but are also essential to sustainable economic growth and suggests
the need for the EU to develop and maintain its own technologies
and production capacities. It also recommends that the joint European
non-dependence process that started in 2009, which involved the
Commission, the European Space Agency (ESA) and the European Defence
Agency (EDA) creating a joint task force to produce a list of
critical technologies for priority development, should be pursued.
The Commission notes that list has been agreed and will be used
in connection with EU research and development on critical technologies.
3.7 The Commission suggests that there is a need
to increase promotion of space based services in order to encourage
the exploitation of satellite infrastructures and develop the
market for satellite based services and says there should be an
increase in space based applications in EU policies as well as
stimulation of new applications across a wide range of public
and private users. The Commission says that the GNSS Action Plan
to foster development and adoption of satellite navigation applications
using the EU programmes, EGNOS and Galileo,[10]
is a first step in the right direction.
Expanding the array and use of available financial
instruments
3.8 The Commission says that:
- space infrastructure funding
needs significant financial input over long periods of time, continuity
is important and postponement will result in additional costs;
- there is a market failure and public funding
is required to support the growth potential of these types of
projects;
- the next Multiannual Financial Framework (MFF)
includes a proposal for a new type of financial instrument
the EU project bond initiative;
- currently, space is not within the scope for
the first stage of this initiative but could be considered for
the second; and
this would, however, be subject to any proposed projects
fulfilling the project bond criteria, in particular regarding
revenue generation.
3.9 The Commission also focuses on the need to
support the participation of SMEs, as appropriate, in the supply
chain and in the fast growing sectors such as satellite enabled
services. It notes that:
- there are a number of financial
instruments available to SMEs, for example, the Competitiveness
and Innovation Framework Programme and the Risk Sharing Financial
Facility; and
- from 2014 SMEs may also be able to benefit from
the EU financial instruments under the forthcoming programmes
COSME (Programme for the Competitiveness of Enterprises and Small
and Medium-sized Enterprises, 2014-20) and HORIZON 2020 (Framework
Programme for Research and Innovation, 2014-20).
3.10 The Commission highlights the key role played
by local authorities and regions in enhancing the competitiveness
of the space industry but does not elaborate in what way.
Making a better use of procurement policy
3.11 The Commission:
- notes that several Space Council[11]
Resolutions have highlighted the need to develop adequate EU instruments
and funding schemes that take into account the space sector;
- says that it is necessary to establish whether
the current approach to space procurement could be improved;
- proposes, to this end, to analyse the impacts
of implementation of Directives on public and defence procurement
on the national and EU space markets; and
- proposes that there should early coordination
for programmes that involve joint funding with the ESA to ensure
that there is a smooth transition between the development and
operational phases.
Establish and implement a real EU launcher policy
3.12 The Commission asserts the importance of
EU autonomy in strategic sectors such as launch services and sets
out its objectives for a launcher policy:
- to ensure a reliable, secure,
available and cost effective system; and
- to create the conditions to maintain and strengthen
independent EU access to space.
3.13 It notes the importance of the EU having
independent access to space when implementing public programmes
such as Galileo and Copernicus[12]
and suggests that Member States should ensure that their launcher
purchasing policies are in line with the goal of independent access.
Support the setting up and operation of a EU space
surveillance and tracking (SST) service
3.14 The Commission notes that the sustainability
of space based systems and services is important, saying that:
- any shutdown would have a significant
impact both on the safety of EU citizens and economic activities
within the EU;
- there is an increasing threat of collision risks
due to the rise in the number of satellites and space debris and
it is necessary to identify and monitor this;
- monitoring would include cataloguing satellite
positions and tracking movements when a potential risk of collision
has been identified so that satellite operators can be alerted;
and
- as no EU level SST capability currently exists,
it intends to come forward with a proposal outlining the organisational
framework for the setting up and operation of such a service,
which would be in partnership with Member States and would build
on their existing assets and expertise.
3.15 This draft Decision, document (b), would
establish a SST support programme for the EU the proposal
is less ambitious than one foreshadowed in the 2011 Communication.
The Commission says that:
- spaced-based systems play a
fundamental role in everyday life and are critical to the economy
and security;
- there is a need to protect EU space infrastructure
accordingly; and
- in order to mitigate the growing risk of collisions
amongst satellites and orbital debris, it is necessary to identify
and monitor space objects in an increasingly congested and contested
orbital environment, in order to ensure the safety, security and
sustainability of the space operations upon which there is are
critical dependency.
3.16 The programme the Commission envisages would
aim to establish a SST capability in the EU with emphasis on:
- exploitation of existing sensors
(optical and radar) to survey and track space objects;
- establishment and operation
of a function to process and analyse SST data to support risk
assessment involving collision avoidance in orbit and re-entry
of objects into the Earth's atmosphere; and
- setting up and operation of a SST function to
support spacecraft operators and public authorities.
3.17 The Commission says that:
- the level of funding proposed
for the SST support programme, 10 million (£8.63 million)
per annum, is relatively modest and should be drawn from other
programmes provided for in the MFF framework for 2014-20;
- it envisages providing support and oversight
for the development of services, but does not intend to invest
in new SST sensors, relying upon the coordination of existing
sensors, owned and operated by the Member States;
- those Member States wishing to participate in
the programme would need to demonstrate ownership of SST sensors
or capabilities and services and adequate resources to operate
and deliver them and to provide a plan for engagement in the SST
programme;
- it anticipates a coordinating role and funding
for the EU Satellite Centre (EU SatCen) based in Torrejon, Spain;
and
- information generated in the framework of the
SST programme would be managed and exchanged in accordance with
data security and governance rules, which would likely reflect
similar existing measures developed by the EU SatCen for handling
sensitive remote sensing data products.
The Government's view
3.18 In his Explanatory Memorandum on the Commission
Communication, document (a), the Minister for Universities and
Science, Department for Business, Innovation and Skills (Mr David
Willetts), says first that:
- the Government notes the Commission's
proposals for a EU space industrial policy;
- the Communication is very wide ranging and extensive
in scope with little detail provided in most cases about what
exactly is proposed;
- the Government will need to consider carefully
the proposals for new EU initiatives as they emerge;
- the thrust of the Communication is on space as
a driver for growth and innovation, which is welcome and in line
with Government policy; but
- the Communication lacks a clear vision on what
the industrial policy is intended to achieve and what the measures
of success will be.
3.19 In more detailed comments the Minister continues
that:
- the Government is concerned
that under the proposals to improve framework conditions, no evidence
has been presented to justify potential legislation on the production
and dissemination of private satellite data;
- it will seek further information from the Commission
on why it believes legislation is required in this area and the
evidence base to support it it is unclear when any proposal
would be made by the Commission;
- the Commission suggests an examination of the
possibility of a legislative instrument on certain aspects which
impact on the emergence of a single market for space products
and services, which could include obligations of insurance, registration
and authorisation of space activities and service, sanctions and
environmental issues;
- these areas are currently regulated in the UK
by the Outer Space Act 1986, in accordance with UN Space Treaties;
- the Act is the legal basis for the regulation
of activities in outer space carried out by organisations or individuals
established in the UK or one of its Crown Dependencies or Overseas
Territories;
- the Government is concerned that the Commission's
proposal has the potential to duplicate effort and increase red
tape;
- the UK will always remain responsible for its
space activities under the UN Treaties the Government
will seek clarification from the Commission on how it envisages
this proposal working alongside Member State obligations under
the UN Treaties and what additional benefit it sees from EU legislation;
- further information is needed on the substance
of the proposal to monitor and improve the export control and
intra-EU transfer frameworks;
- in particular more analysis is needed on what
might be wrong with the existing frameworks or what improvements
are envisaged and the Government will seek further information
on the Commission's rationale for proposing action in this area;
- the Government supports the need to ensure the
availability of radio spectrum for space operations but would
welcome more details from the Commission on how it proposes to
take this forward in the longer term;
- on the proposal to explore whether commercial
space flights need to be embedded in a EU legal framework, the
Government considers more could be done than just a study and
is disappointed that this is all that is being proposed;
- without swift movement in this area the EU will
fall behind key international competitors such as the US;
- any regulatory regime that is developed must
take proper account of the available scientific and technological
evidence and make correct use of the distinction between risk
and hazard;
- the Government will challenge any Regulation
that justifies an excessively cautious approach, particularly
if it is based on a misunderstanding of the "precautionary
principle";
- it sees substantial economic benefits from encouraging
the development and operation of space planes to undertake commercial
flights in the short term and to further develop space planes
so that they can deliver spacecraft into low Earth orbit, geostationary
orbit and beyond;
- there is no regulatory framework for space planes
in the EU and that is acting as a barrier to the research and
development of space planes by UK companies;
- this reduces the EU's ability to attract inward
investment from overseas companies that could plan to operate
space plane services;
- the Government has therefore committed to working
with international partners to secure a regulatory environment
for space planes in its Growth Review;[13]
- the proposals relating to skills are welcome
and the Government would expect that these proposals will build
on the work already being undertaken in this area;
- the Commission proposes establishment of academic
space qualifications and the Government will seek clarification
from it on what is envisaged by this;
- there are already many engineering, science and
business qualifications already available and the Government needs
to ensure that what is being proposed does add value it
will seek to ensure that any measures do not infringe on Member
State competence;
- the Government will seek clarification from the
Commission on what it proposes in respect of ensuring that the
EU space industry is taken into account during trade negotiations
it is vital that competition remains open and fair, however,
the Government would support the possibility of the opening up
of those markets that are currently closed to EU industry;
- the Government agrees that research and development
are essential elements of sustainable economic growth
it is, however, essential, if investment is to be directed to
best effect, that space related research and development is fully
co-ordinated using the detailed harmonisation and planning processes
already developed and operated by the ESA;
- the Government recognises the importance of Key
Enabling Technologies (KET) to technology-based innovation generally
and in the specific domain of space technologies and will ensure
that the opportunities for funding from KET elements of Horizon
2020 are promoted to the UK space research and development community;
- the Government welcomes a stronger focus on research
and development the budget Heading 1A, which covers Horizon
2020 and other pro-growth investment, will now account for 13%
rather than 9% of the total EU budget and is an increase of 37%
compared to the present MFF however, these figures are
subject to the consent of the European Parliament;
- the Government supports the objective of strategic
non-compliance in critical technologies but this should not be
at any cost it will work with the Commission to ensure
that proposals brought forward in this area are affordable;
- the joint planning around critical planning for
non-dependence already undertaken by ESA/EU/EDA using the ESA
harmonisation methodology provides a sound basis for future planning
of investment in this area;
- further information is required on the proposal
to promote the use of space-based technologies and applications
in EU policies the Government would support such use where
appropriate, for example, further analysis of where space services
derived from Copernicus could assist compliance with Directives
concerning environmental monitoring and management;
- in relation to expanding the array and use of
available financial instruments the Government notes that these
proposals are broader than space and would welcome further details
from the Commission on how it envisages these proposals working
in practice the Government would support efforts to ensure
that financial instruments are fully exploited by industry;
- in relation to the Commission's proposal on restricting
third country market access in public procurement, the Government
has previously challenged this proposal because of its protectionist
nature;
- however, the public procurement section of the
Communication is helpful in setting out that the public procurement
Directives apply in this area and that EU institutions are required
to follow the Financial Regulation and Implementing Rules
the Government would welcome clarification from the Commission
on how it intends to take forward this work;
- the Government notes the Commission's desire
to establish and implement a real EU launcher policy and supports
the policy of access to space;
- the UK is a signatory to the 2008 Ministerial
Declaration on Launchers Exploitation from the Guiana Space Centre,
that entrusts Arianespace through the ESA with the execution of
the production of Ariane launchers and the exploitation of Ariane,
Vega and Soyuz;
- although the UK does not subscribe to the ESA's
launcher programmes, the Government recognises the importance
of independent access to space it will, however, seek
clarification from the Commission on the scope and affordability
of the proposed policy;
- the Government believes that any launcher policy
will need to look carefully at customer requirements and current
model for launcher development and production to ensure that the
best option is taken forward for the EU's independent access;
- this could involve a radical change to the current
arrangement that is in place the Government will therefore
be seeking clarification from the Commission on what it envisages
by a "real European launcher policy" and how it sees
the governance structure developing; and
- the Communication does not say anything about
the Commission's strategic view for the future of the EU space
industry in the long term, nor does it include any performance
indicators against which progress can be assessed the
Government will continue to urge the Commission to address this
deficiency.
3.20 Finally the Minister tells us that the Irish
Presidency has indicated its wish to secure Council Conclusions
on this Communication at the Competitiveness Council on 30 May.
3.21 In his Explanatory Memorandum on the draft
Council Decision, document (b), the Minister, telling us that
the Government supports the principle of an EU SST capability
which draws upon existing sensors owned and operated by Member
States (rather than development of new capability owned and operated
by the Commission or another EU institution) and says that this
would be regarded as best use of existing capabilities in a time
of resource constraints.
3.22 In more detailed comments the Minister says
that:
- the Government recognises the
importance of working with the EU, Member States and the ESA on
an integrated approach to security in European space programmes
and wider space policy, including in infrastructure and systems
resilience;
- it supports a coordinated international effort
to improve SSA of which SST is the main, and most important element;
- good SSA is vital in underpinning international
efforts in striving towards a safer and more secure space environment;
- this involves the surveillance of space, and
the analysis and assessment of potential threats and hazards to
space activities;
- SSA/SST provides the ability to anticipate and
respond to threats in a timely manner, thus reinforcing resilience,
and national and international security;
- SST is one of the means by which UK fulfils its
obligations under the Outer Space Act 1986 in monitoring objects
licensed for launch by the UK;
- this EU initiative has the potential to enhance
the Government's ability to fulfil these obligations under the
Outer Space Treaties;
- the Government recognises that SSA/SST to support
a safer and more secure space environment is best achieved collectively;
- the US maintains the strongest national capability
through its space surveillance network, to which the UK contributes
through RAF Fylingdales, with national coordination through the
UK Space Operations Coordination Centre at RAF High Wycombe;
- this arrangement gives the UK access to much
better SSA than it could achieve alone, but it still does not
meet all of its national needs, or those of UK-based commercial
or civil operators;
- as space becomes more congested, there is a growing
need in the UK and other countries for a more holistic SSA picture
and more predictive capabilities;
- the proposed programme presents an opportunity
for the UK to build on its existing civil SSA activities and build
capability/capacity to serve its growing civil requirement via
EU funding;
- governance and management of the proposed system
will require greater consideration and clarification in order
to ensure that EU aspirations are practicable and deliverable
and the Government will seek to exploit its expertise and experience
in existing SST provision to facilitate this process and influence
the evolution of the programme;
- the role proposed for the EU SatCen is new and
it will be important to seek verification from the Commission
that these new functions are entirely compatible with its current
competencies and capabilities;
- the draft Decision could result in more staff
at the EU SatCen, but it is being funded by a customer (in this
case, the Commission), which is the customer-funding direction
the Government wants the Centre to take, as opposed to fixed funding
from Member States;
- Member States should also retain ownership of
the overall EU SatCen product, where security sensitivities may
apply;
- data security will be a fundamental prerequisite
for the success of this support programme since close analysis
of satellites for example can be sensitive; and
- the draft Decision addresses data security but
the Government will explore in negotiations whether the proposed
arrangements are sufficiently robust to deliver the necessary
level of protection.
3.23 On the financial aspects of the draft Decision
the Minister says that:
- the Commission's impact assessment
sets out the estimated cost for options for the development of
an EU capability on SST support services and concludes that a
budget of 70 million (£60.4 million) over the period
2014-20 is needed;
- the draft Decision does not set a cap for the
level of expenditure for the programme and the Government will
seek to include one in negotiations;
- the EU funding envisaged for the programme would
be drawn from other programmes provided for in the MFF for 2014-20,
such as the Galileo Programme, Horizon 2020 and the Internal Security
fund therefore the proposal does not constitute a request
for funds additional to the budget proposed for the MFF; and
- the Government wishes to understand the Commission's
rationale for proposing the Internal Security Fund as a source
of funding since it is not apparent that it is within the scope
of that programme.
Conclusion
3.24 Noting the Presidency's intention to
have Council Conclusions on the Commission Communication, document
(a), agreed at the Competitiveness Council in May, we presume
that the Government will be ensuring that these either confirm
the various clarifications it is seeking or do not pre-empt resolution
of the caveats it has expressed to us. Accordingly we should like
to have an account before that Council of the thrust of the proposed
Conclusions. Meanwhile the document remains under scrutiny.
3.25 As for the draft Decision, document (b),
before we consider it further we should like to have, in due course,
an account of progress in the negotiations on the various issues
drawn to our attention, including the financial implications,
particularly the proposed use of the Internal Security Fund. Meanwhile
this document also remains under scrutiny.
9 (32660) 8693/11 + ADDs 1-6: see HC 428-xxvi (2010-12),
chapter 1 (11 May 2011) and Gen Co Debs, European Committee
C, 23 May 2011, cols. 3-14. Back
10
(31718) 11137/10 + ADDs 1-2: see HC 428-ii (2010-11), chapter
19 (15 September 2010). Back
11
The Space Council is a ministerial body combining the EU's Council
of Ministers and the ESA's ministerial council. Back
12
Copernicus was known formerly as GMES, Global Monitoring for Environment
and Security. Back
13
See "Plan for Growth implementation update",
HM Treasury and BIS, March 2013 at http://www.hm-treasury.gov.uk/d/growth_implementation_update_mar2013.pdf. Back
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