NZ's Space Agency: Balancing Regulation and Development in the Aerospace Industry

The global space industry is booming, with a projected value of US$1.8 trillion by 2035. New Zealand's aerospace sector is also experiencing rapid growth. However, a recent study highlights the tension between the country's Space Agency's role as a regulator and developer, and its ability to address urgent sustainability concerns. Let's delve deeper into this point of tension and explore the challenges faced by New Zealand's Space Agency in managing the dual roles.

The Growth of New Zealand's Aerospace Sector

New Zealand's aerospace industry was catalyzed by Rocket Lab USA's decision to launch rockets from the Māhia peninsula, which led to the establishment of the country's Space Agency. This small unit, operating under the Ministry of Business, Innovation and Employment (MBIE), serves as a regulator of launch payloads and facilitates business development in the sector by providing access to funding for commercial ventures and scientific research.

Aligned with the country's 2023 aerospace strategy and national space policy, MBIE has set a target of achieving NZ$10 billion in annual revenue by 2030. To support this goal, New Zealand appointed its first cabinet minister for space. However, the study indicates that the dual role of the Space Agency as both a regulator and developer poses challenges in balancing sustainability and economic growth.

The Conflict of Interest

The study suggests that the Space Agency's dual role introduces a conflict of interest between promoting sustainability and fostering economic growth. This conflict is further exacerbated by current budget constraints that place a high demand on the agency's resources to fulfill both commitments. While the government relies on the agency for leadership in sustainability, it also serves as a customer, investor, and regulator for the sector. This complexity raises questions about whether the government can prioritize sustainability adequately.

Lack of Clarity on Sustainability

The study also highlights the lack of clarity and specific approaches when it comes to sustainability initiatives in New Zealand's aerospace sector. Although small steps, such as a space debris removal policy, have been taken, critics argue that these measures are not proactive enough. With the growing number of market entrants, concerns over space debris, ozone depletion, and environmental pollutants from rocket launches need to be addressed comprehensively.

The Need for Sustainability Leadership

To navigate the challenges posed by the dual role of regulator and developer, New Zealand's Space Agency must provide clear guidelines on balancing growth and regulation with environmental and social impacts. It is crucial to ensure that sustainability values are not disregarded in favor of growth-driven initiatives.

One possible approach is to learn from other economically-driven industries that actively participate in sustainability initiatives, such as the Sustainable Business Network and the B Corp movement. By adopting a more responsible and forward-thinking mindset, New Zealand's aerospace sector can strike a balance between growth and sustainable development.

The Role of International Cooperation

In addition to a domestic approach, international cooperation is essential in addressing sustainability concerns in space. With nations like the United States exerting "soft" power and influencing the industry, it is crucial for New Zealand and other countries to collaborate and set rules for space exploration and commercial activities that prioritize sustainability.

Conclusion

New Zealand's Space Agency faces the challenge of balancing its role as both regulator and developer in the growing aerospace industry. The tension between promoting sustainability and fostering economic growth is evident, and there is a need for clearer guidelines and approaches to address urgent sustainability concerns. By taking inspiration from other industries and adopting a responsible mindset, New Zealand's aerospace sector can grow sustainably and contribute to the global space industry while mitigating environmental and social impacts. International cooperation will also play a crucial role in setting the rules for a sustainable future in space exploration.

Authors: Priyanka Dhopade, Senior Lecturer in Mechanical Engineering, University of Auckland, Waipapa Taumata Rau, and Catherine Qualtrough, Research Operations Manager, University of Auckland, Waipapa Taumata Rau

Original article: https://www.nationaltribune.com.au/nz-s-space-agency-is-both-regulator-and-developer-of-the-aerospace-industry-that-s-a-point-of-tension/