NZ’s Space Agency is both regulator and developer of the aerospace industry – that’s a point of tension
The New Zealand Space Agency’s dual role as regulator and sector developer introduces a conflict of interest and skews the aerospace industry towards economic growth, at the cost of sustainability.
Priyanka Dhopade, Senior Lecturer in Mechanical Engineering, University of Auckland, Waipapa Taumata Rau, Catherine Qualtrough, Research Operations Manager, University of Auckland, Waipapa Taumata Rau
30 August 2024
Like the global space industry, which aims to reach a value of US$1.8 trillion by 2035, New Zealand’s aerospace sector is growing rapidly.
But as our latest research shows, it is falling short on addressing urgent sustainability issues because of a perception this would incur short-term costs and slow growth.
Many countries are prioritising the development of national space strategies. Usually, these include plans to increase access to venture capital, grow a specialist workforce and develop flexible regulations and sovereign defence capabilities.
New Zealand’s aerospace regulatory system was catalysed by Rocket Lab USA’s commercial decision to launch rockets from a spaceport on the Mahia peninsula.
This was followed by the establishment of New Zealand’s Space Agency. This small unit of the Ministry of Business, Innovation and Employment (MBIE) regulates launch payloads and fosters business development by facilitating access to funding for commercial ventures and scientific research.
A central component of New Zealand’s commercial aerospace activity is a bilateral agreement with the US. This enables the launch of American payloads aboard Rocket Lab’s Electron vehicle, negotiated in part by the Space Agency.
But our study suggests the Space Agency’s dual role as regulator and sector developer introduces a conflict of interest between promoting sustainability and fostering economic growth. This tension is exacerbated by current budget constraints which place too high a demand on the agency’s resources to fulfil both commitments.
The government is simultaneously a customer, investor and regulator of the sector. Yet, it is being relied upon for leadership in sustainability.
Expectations versus reality
Companies are looking to the government for incentives to prioritise sustainability, such as monitoring emissions and pollutants from launches.
However, this commitment lacks quantifiable details and is not reported in any government documentation. This creates a vacuum where no party (government, industry or the public) assumes responsibility for sustainability.
A sustainability leadership vacuum
The absence of sustainability leadership allows nations with “soft” power, such as the US, to set the rules through the control of resources and norms, such as the renewed goal to head back to the Moon.
To navigate this challenge, we need leadership through international cooperation as well as a robust domestic approach to encouraging and rewarding sustainability initiatives.
Recent initiatives, including small prizes and seed funding for feasibility studies, along with efforts to streamline regulatory approvals, have been announced to aid the growth of the sector.
However, while there is a strong push for accelerated growth, the documents lack clarity on the investment required to sustain business development.
Unlike other countries where government co-financing often plays a crucial role in advancing space-related technologies, New Zealand’s approach to financial support – whether through grants, loans, tax incentives or employment regulations – remains poorly defined.
While the national space policy document cites sustainability values, it falls short of outlining specific approaches or initiatives. Notably, it lacks a clear working definition of sustainability.
The need for clarity and balance
As the aerospace sector grows – amid the uncertainties of climate change, rapid technological developments and continued American influence – we need to clarify the relationship between public and private actors.
Specifically, we need clear guidelines on who is responsible for balancing growth and regulation with environmental and social impacts of industrial activities.
The aerospace sector could benefit from looking to other economically-driven industries that willingly participate in sustainability initiatives, such as the Sustainable Business Network and the B Corp movement.
This approach would address space sustainability concerns in a more balanced manner, as opposed to the growth-driven mindset that often disregards sustainable development.
By shifting the mindset, we can pave the way for a more responsible and forward-thinking aerospace sector.
Catherine Qualtrough is affiliated with Aerospace Auckland/NZ.
Priyanka Dhopade does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
This article is republished from The Conversation under a Creative Commons license.
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