The global space industry is rapidly expanding, with an anticipated market value of US$1.8 trillion by 2035. In parallel, New Zealand’s aerospace sector is experiencing significant growth. However, despite these positive trends, recent research highlights a critical oversight: the sector’s lack of emphasis on sustainability. This oversight is primarily driven by concerns over potential short-term costs and the perceived impact on growth.
Globally, many countries are crafting national space strategies to boost their aerospace industries. These strategies commonly focus on enhancing access to venture capital, building a skilled workforce, developing adaptive regulations, and strengthening sovereign defense capabilities. However, a key element often overlooked in these strategies is sustainability. As space activities increase, issues such as space debris, ozone depletion from rocket launches, and atmospheric pollution from re-entering objects are becoming critical concerns. Addressing these environmental challenges is crucial to ensuring the long-term viability of space activities.
New Zealand’s Aerospace Regulatory Framework
New Zealand’s entry into the aerospace industry was spurred by Rocket Lab USA’s decision to use the Māhia peninsula for rocket launches. This commercial initiative led to the establishment of New Zealand’s Space Agency, a unit within the Ministry of Business, Innovation and Employment (MBIE). The agency plays a dual role in regulating launch payloads and promoting business development by facilitating access to funding. A key aspect of New Zealand’s commercial aerospace activities is a bilateral agreement with the United States, enabling the launch of American payloads on Rocket Lab’s Electron vehicle. This agreement underscores New Zealand’s strategic alignment with global space powers.
MBIE has set an ambitious revenue target of NZ$10 billion annually by 2030, in line with New Zealand’s 2023 aerospace strategy and national space policy. The appointment of New Zealand’s first cabinet minister for space underscores the government’s commitment to this goal. However, our research indicates that the Space Agency’s dual mandate as both a regulator and a developer introduces a conflict of interest. This tension is exacerbated by budget constraints, limiting the agency’s capacity to prioritize both economic growth and sustainability.
Government’s Role in Sustainability
The New Zealand government, as a customer, investor, and regulator of the aerospace sector, is positioned to lead sustainability initiatives. However, companies within the sector are increasingly looking to the government for incentives, such as monitoring emissions and pollutants from rocket launches. While the Space Agency has developed a space debris removal policy, critics argue that it lacks proactivity. With over 80% of objects in Earth’s orbit classified as space junk, the existing policy does not adequately address the environmental impact of the increasing number of market entrants.
According to Judith Collins, New Zealand’s Minister for Space, her office collaborates with the Ministry for the Environment, the Environmental Protection Authority, and industry representatives like Rocket Lab to monitor and mitigate potential environmental harms. However, this commitment lacks quantifiable metrics and is not documented in government reports. This lack of transparency and accountability creates a situation where neither the government, the industry, nor the public takes responsibility for sustainability.
International Cooperation
The absence of clear sustainability leadership domestically allows nations with substantial influence, such as the United States, to dominate the setting of standards and regulations through control of resources and the establishment of norms. A robust response to these challenges requires both international cooperation and a comprehensive domestic strategy. By collaborating internationally, New Zealand can align itself with global best practices, ensuring its aerospace sector remains competitive and responsible.
Recent government initiatives have included small prizes, seed funding for feasibility studies, and efforts to streamline regulatory approvals to support sector growth. However, while these efforts are a step in the right direction, they do not adequately address the critical issue of sustainability. The policy documents emphasize the need for accelerated growth but lack specificity regarding the necessary investments to support sustainable business development.
In contrast to countries where government co-financing plays a vital role in advancing space technologies, New Zealand’s approach to financial support is inadequately defined. There is a need for clearer guidelines on grants, loans, tax incentives, and employment regulations to promote sustainability. Without a structured approach to financial support, the sector may struggle to innovate sustainably.
Defining Sustainability in Aerospace
While New Zealand’s national space policy acknowledges the importance of sustainability, it falls short of outlining specific initiatives or defining what sustainability means within the context of the aerospace sector. A clear working definition is essential for setting measurable goals and assessing progress. Such a definition would also guide stakeholders in aligning their efforts toward common sustainability objectives.
As New Zealand’s aerospace sector continues to expand, it must address the uncertainties posed by climate change, technological advancements, and the influence of international players like the United States. A clear understanding of the relationship between public and private entities is crucial. This understanding should include explicit guidelines on who is responsible for balancing the sector’s growth with its environmental and social impacts.
New Zealand’s aerospace sector can draw valuable lessons from other economically driven industries that have successfully integrated sustainability into their business models. Examples include the Sustainable Business Network and the B Corp movement, which demonstrate that economic growth and environmental responsibility can coexist. By adopting similar frameworks, the aerospace sector can develop sustainable practices that align with broader societal values.
New Zealand’s aerospace sector
- Define Sustainability: Develop a clear, working definition of sustainability specific to the aerospace sector.
- Financial Incentives: Establish structured financial support mechanisms, including grants, loans, and tax incentives, to encourage sustainable practices.
- Transparent Reporting: Implement mandatory reporting requirements for environmental impacts and sustainability initiatives.
- International Collaboration: Foster partnerships with other countries to align on sustainability standards and share best practices.
- Public and Private Collaboration: Encourage collaboration between government agencies, industry stakeholders, and the public to develop a shared vision for sustainability.
The rapid growth of New Zealand’s aerospace sector presents both opportunities and challenges. While economic ambitions are clear, there is an urgent need to integrate sustainability into the industry’s development strategy. By adopting a proactive approach that balances growth with environmental responsibility, New Zealand can position itself as a leader in the global aerospace sector. This will not only ensure the long-term viability of space activities but also align with the country’s broader commitment to sustainable development.
