Leveraging a Circular Economy for Space Sustainability: Government Roles and Economic Impacts

By Nathaniel Dailey , Thomas Groesbeck, Ph.D. , Kevin Toner , Rozlyn Engel , Zhanna Malekos-Smith, JD , Lee Steinke

The accumulation of space debris presents a critical challenge to the sustainability of orbital operations and the long-term utility of space as a vital resource.

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Based on MITRE economic studies of space sustainability, this paper proposes a framework based on the principles of a circular economy to address the issue of space debris, focusing on the repurposing and reuse of materials from decommissioned satellites and spent launch vehicles. The proposed framework outlines a holistic approach that includes regulatory reforms, technological innovations, and economic incentives to facilitate the removal and recycling of space debris.

The pivotal role of governments in stimulating sustainable economic development in space through funded research and development (R&D), specific programs, incentives, and regulatory actions targeting private sector space initiatives is analyzed.

The paper argues for the necessity of an international cooperative model that harmonizes policies and integrates economic motivations towards space sustainability. This approach involves a detailed examination of the cost-benefit analysis of implementing a circular economy model in space, highlighting the potential for material recapture to emerge as a profitable sector within the space industry, thereby contributing to economic growth both in space and on Earth.

Technological advancements in debris-tracking, robotic capture mechanisms, and on-orbit servicing and manufacturing are discussed as essential enablers for the material reclamation process. The paper delves into the socio-economic impacts, including job creation, skill development, and the fostering of international collaborations that facilitate technology transfer and capacity building.

Environmental and sustainability considerations form a core component of the analysis, with the paper assessing how a circular space economy can mitigate risks to future missions and contribute to the long- term sustainability of space operations. The presentation concludes with actionable recommendations for policymakers, industry leaders, and stakeholders, offering a vision for a future where space operations are characterized by efficiency, sustainability, and economic viability. 

This paper contributes valuable insights and practical solutions to the discourse at the International Astronautical Congress, addressing the urgent need for sustainable orbital operations and the significant role governments play in achieving this goal through economic and regulatory means. Presenting a transformative model that aligns the circular economy principles with the unique challenges of space logistics paves the way for new business opportunities and sustainable utilization of space resources, ensuring the preservation of the near-Earth environment for future generations.