On January 29, 2025, the Subcommittee on the Review of the Space Activities Law (the "Subcommittee"), a group established within the Basic Policy Group of the Space Policy Committee of the Cabinet Office, released its Interim Report on Basic Approach of the Review of the Space Activities Law¹ (the "Interim Report"). The Act on Launching and Managing Artificial Satellites (the "Space Activities Law") came into force in 2018, but the space business activities envisaged at that time were limited to basic activities such as the launching of traditional communication satellites. In response to the recent advancement and diversification of the private space business sector, discussions have been under way since September 2024 to address this imbalance. The Interim Report summarizes the discussions held so far, and points us towards the issues to be considered in the future.

This article was written as of March 2025.

1. Summary of the Interim Report

A summary of the Interim Report is as follows, below. The priorities to be considered for each issue are also indicated in the summary.

1.1 Issue 1: Regulating Various Space Activities²

Approach to the introduction of the new framework to respond to the diversification of the space businesses is indicated.

[Main Considerations]

• Response to various forms of space transportation: The aim is to develop systems that can respond to various launching modes, such as the launch of reusable rockets, and suborbital flights (a flight that returns without orbiting after rising above a certain altitude).
• Response to the diversification of satellites: The scope of regulation by issuing satellite management permits for probes, lunar transporters, and dummy payloads will be clarified.

¹ https://www8.cao.go.jp/space/comittee/31-katsudou_minaosi/k_m-dai8/honbun.pdf (In Japanese)

² Regarding the establishment of new systems being considered to respond to the diversification of space business, please refer to our following newsletters:
 "Interim Summary on the Review of Space Activities, Law Part 1" (https://www.amt-law.com/asset/pdf/bulletins14_pdf/250212.pdf)
 "Interim Summary on the Review of Space Activities Law, Part 2" (https://www.amt-law.com/asset/pdf/bulletins14_pdf/250220.pdf)

1.2 Issue 2: Strengthening the International Competitiveness of the Space Industry

Along with the development of the space industry in other countries, procedures to enhance Japan's competitiveness are being studied.

[Main Considerations]

• Establishment of a system that regulates Japanese individuals and corporations who are seeking to conduct activities (such as launches) outside Japanese territory.
• Introduction of a framework that allows foreign individuals and corporations to smoothly obtain a license for space activities such as launches within Japanese territory.
• Introduction of a comprehensive licensing system: In response to requests from the Japan Aerospace Exploration Agency (JAXA) and private companies, the introduction of a system to permit multiple launch activities, etc., under specified conditions, comparable to that used in the United States, is being studied.
• Introduction of a type certification regime for satellite management permits: In response to requests from private companies that manage artificial satellites, the introduction of a system to simplify procedures is being studied.

1.3 Issue 3: Ensuring the Safety and Reliability of Space Activities

Institutional design to enhance the safety and reliability of space activities is also important.

[Main Considerations]

• Expansion of the scope of government indemnity: In response to requests from private companies, the government will consider the introduction of a government compensation system that assumes compensation measures for third-party damages caused by the fall, collision, or explosion of artificial satellites during the re-entry activities. However, this is being considered as a medium- to long-term solution.
• Establishment of a reporting system for accidents and third-party damages: As there is an accident reporting system in the United States, the United Kingdom, France, etc., the Japanese government will consider developing one as well.
• Confirmation system for payloads in cases where hazardous or low-combustibility materials are carried.
• Enhancement of rules regarding the registration of space objects.

2. Future issues

In reviewing the Space Activities Law, it is important to balance the growth of the space industry with ensuring safety and reliability. The Subcommittee is continuing their discussions with the aim of designing specific systems for a final compilation. We look forward to reporting on further developments in these discussions as updates occur.