The Ethics of Orbit

Who’s Responsible for Cleaning Up Space Debris?

Space Junk and Orbital Debris orbiting a cresent Earth

In the vast expanse of low Earth orbit, a silent crisis unfolds: millions of fragments from defunct satellites, spent rocket stages, and collision debris threaten the sustainability of space activities. As satellite constellations proliferate—driven by commercial ventures like broadband networks—the ethical question of responsibility looms large. Under the Outer Space Treaty of 1967, governments bear ultimate liability for national space activities, including those by private entities, yet the moral imperative for cleanup increasingly falls on innovative companies and investors. This tension between legal obligations and private initiative creates fertile ground for investment, as the space debris removal market emerges as a data-driven opportunity. Institutional investors, from venture capital firms to aerospace conglomerates in the U.S. and Europe, are eyeing this sector not just for returns, but for aligning with global sustainability goals. With market projections indicating steady growth amid rising regulatory pressures, the cleanup of orbit represents both an ethical duty and a strategic business thesis.

Market Size and Growth Drivers

The space debris monitoring and removal market, valued at approximately USD 1.05 billion in 2024, is projected to reach USD 1.14 billion by 2025, expanding at a compound annual growth rate (CAGR) of around 7-10% through 2030, potentially hitting USD 1.68 billion. These figures, drawn from reports by Grand View Research and Mordor Intelligence, reflect conservative estimates amid varying forecasts—some as high as USD 4 billion by 2034—highlighting the sector's nascent stage and dependency on technological maturation. Key drivers include the surge in low Earth orbit (LEO) satellite launches, with over 10,000 active satellites as of 2025, exacerbating collision risks and ethical concerns over orbital sustainability.

Ethically, the Outer Space Treaty mandates that states prevent harmful contamination, placing responsibility on governments like those in the U.S. and Europe to regulate private actors. However, private entities increasingly shoulder the burden, as seen in the European Space Agency (ESA)'s Zero Debris Charter of 2023, which 17 European nations adopted to enforce mitigation standards. In the U.S., the Federal Communications Commission (FCC)'s 2023 rule mandates deorbiting satellites within five years post-mission, compelling operators to invest in removal solutions. This regulatory push creates market incentives, but skepticism remains: enforcement gaps could delay growth if governments fail to hold private polluters accountable.

Institutional investors must consider these dynamics. For instance, sovereign wealth funds and aerospace conglomerates view debris removal as a hedge against orbital congestion, which could disrupt USD 1 trillion in annual space economy revenues by 2030. Yet, the market's fragmentation—split across sub-sectors like active debris removal (ADR), on-orbit servicing (OOS), and debris tracking—demands careful assessment. Data from NASA indicates over 36,000 tracked debris objects larger than 10 cm, underscoring the urgency, while ethical lapses, such as unchecked mega-constellations, risk amplifying liabilities under international law.

Regulatory and Ethical Considerations

Recent regulatory advancements in the U.S. and Europe underscore the evolving framework for space debris management, intertwining legal mandates with ethical imperatives for sustainability. In Europe, the European Union (EU)'s proposed Space Act, anticipated for 2025, aims to harmonize rules on collision avoidance, debris mitigation, and pollution control, imposing mandatory obligations on operators, including non-EU entities. This legislation reflects a proactive stance, drawing from the ESA's Zero Debris approach, which updated its mitigation policy in November 2023 to limit debris production by 2030 across missions. The Zero Debris Charter, co-developed with over 40 space actors and open for global signatories, emphasizes collective action, requiring innovations in disposal and collision prevention.

In the U.S., alongside the FCC's deorbiting rule, NASA's 2023-2025 guidelines stress risk mitigation, including controlled reentries and active removal pilots. These regulations build on the Outer Space Treaty's Articles VI and VII, which hold states responsible for authorizing private activities and liable for damages, yet lack specifics on debris removal procedures. This ambiguity fuels ethical debates: governments, particularly historical polluters like the U.S., Russia, and China (responsible for ~95% of debris), bear moral duties for legacy cleanup, while private companies drive innovation but risk free-rider issues in a "Tragedy of the Commons" scenario.

Ethically, space debris cleanup is framed as a public good—non-excludable and non-rivalrous—benefiting all orbital users regardless of contribution. Debates highlight tensions: should private entities, profiting from space, fund remediation, or do governments hold primary accountability under international law? Emerging nations' commitments to initiatives like Net Zero Space signal broader equity, but enforcement challenges persist, as seen in 2025 reentry incidents. For institutional investors, these considerations imply due diligence on compliance risks; non-adherence could lead to liabilities, while alignment with ethical standards enhances ESG appeal. Skepticism is advised: while regulations drive market growth, gaps in binding global mechanisms may hinder equitable responsibility-sharing.

Investment Landscape

Over the past five years, investments in space debris removal have accelerated, with notable rounds in the U.S. and Europe totaling over USD 300 million across key players. From 2020 to 2025, venture capital and government-backed funding dominated, reflecting a mix of investor types including private equity, sovereign funds, and conglomerates. Astroscale, with European and U.S. operations, secured USD 51 million in its Series E round in 2020 and another USD 76 million in 2023, bringing its total to USD 191 million from investors like Mitsubishi UFJ Trust. Similarly, Swiss-based ClearSpace raised €26.7 million in its 2023 Series A, led by OTB Ventures and Swisscom Ventures, supplemented by ESA's €86 million for its ClearSpace-1 mission.

This landscape favors institutional investors seeking long-term theses, as government contracts—such as NASA's partnerships with Northrop Grumman for debris tracking—provide revenue stability. In Europe, ESA's procurement of ADR missions from private firms like D-Orbit underscores sovereign involvement, blending ethical responsibility with economic incentives. However, ethical considerations complicate the picture: private entities operate under state oversight per the Outer Space Treaty, raising questions about liability for damages caused by debris. "States shall be liable for damage caused by their space objects," notes Article VII, yet investors must scrutinize whether funding startups absolves governments of moral duties for historical debris.

Skepticism is warranted amid funding droughts in broader space tech; while Astroscale's raises signal confidence, smaller players like Turion Space in the U.S. have secured seed funding below USD 10 million, highlighting risks in unproven technologies. Institutional considerations include exit strategies—acquisitions by conglomerates like Airbus—and alignment with ESG criteria, where debris cleanup addresses sustainability imperatives.

Key Players and Competitive Advantages

In the U.S. and Europe, a handful of companies dominate the debris removal arena, leveraging technological edges and strategic partnerships. Astroscale, with dual U.S.-European footprints, excels in magnetic docking for ADR, demonstrated in its 2024 ELSA-d mission, giving it a first-mover advantage in OOS. ClearSpace, backed by ESA, focuses on robotic arms for capturing large debris, as in its planned 2026 mission to remove a 112-kg rocket part, positioning it strongly in Europe through government ties.

U.S. leaders include Northrop Grumman, which integrates debris tracking into its broader defense portfolio, offering scalability via existing satellite servicing tech like the Mission Extension Vehicle. LeoLabs specializes in radar-based tracking, providing data analytics that underpin removal operations, with competitive edges in AI-driven predictions. Emerging players like Turion Space emphasize autonomous drones for inspection and removal, appealing to cost-conscious investors.

Competitive advantages hinge on innovation and collaboration, but ethical responsibilities temper them: private firms must navigate state liability under international treaties, ensuring technologies prevent rather than exacerbate debris. Airbus in Europe gains from its laser-based systems, fostering sustainability, yet faces scrutiny over dual-use potential. As NASA's Orbital Debris Program notes, "The benefit of removal is a reduction in risk valued at USD 3.5 million per year," highlighting quantifiable edges for players with proven tech.

Applications and Use Cases

Core applications span debris tracking, ADR, and OOS, with use cases centered on collision avoidance and satellite life extension. Tracking employs ground-based radars and AI to monitor objects, as LeoLabs does for U.S. Department of Defense clients, preventing ethical lapses like Kessler Syndrome cascades. ADR involves nets, harpoons, or robotic arms—ClearSpace's approach—to deorbit large fragments, addressing moral imperatives for cleanup.

OOS extends satellite lifespans via refueling or repairs, reducing new launches and debris generation, as in Northrop Grumman's missions. Use cases include commercial satellite operators avoiding billions in losses from collisions, but ethically, governments must ensure private applications comply with treaties, preventing profit-driven neglect of smaller debris. An overview of emerging tech like laser nudging offers promise, yet requires verification to avoid unintended orbital pollution.

Future Outlook

Looking to 2030, the market's trajectory hinges on regulatory evolution and technological breakthroughs, with projections of USD 1.68-4 billion amid 7-10% CAGR. U.S. and European initiatives, like ESA's ClearSpace-1 and NASA's ADR pilots, signal maturation, but ethical challenges persist: who funds removal of legacy debris from Cold War-era launches? Binding treaties may emerge, per ResearchAndMarkets, forcing private-government collaboration.

Investors should anticipate risks from geopolitical tensions and tech failures, yet opportunities in AI-integrated systems abound. As debris grows 5% annually, sustainable practices will define winners, aligning ethics with profits.

In conclusion, the ethics of orbit demand shared responsibility—governments enforcing treaties, private entities innovating solutions. For institutional investors, this market offers data-backed prospects, provided skepticism guides decisions toward verifiable advancements.

This article was produced with the assistance of A.I.

Editorial Notes

Sources: Grand View Research (2025 report); Mordor Intelligence (2025); ResearchAndMarkets (2025); SpaceNews (2023); Reuters (2023); MarketsandMarkets (2023); Emergen Research (2025); StartUs Insights (2025); UNOOSA Outer Space Treaty; NASA reports (2023); ESA updates (2025); Fortune Business Insights (2022-2029); Cooley (2025); Global Policy Watch (2025); ScienceDirect (2024-2025); Forward Pathway (2025); ROOM Space Journal; SGAC (2024); AIAA (2024); OPS Portal (2023-2025); NSS PDF (2025).

Verification Limitations: Market forecasts vary by methodology; funding data self-reported. EU Space Act details preliminary. No access to proprietary databases.

Research Gaps: Limited mid-2025 enforcement data; underrepresentation of non-Western perspectives; no granular ROI or emerging nation specifics.