Revisiting selected issues in the Draft Protocol to the Cape Town Convention on Matters Specific to Space Assets

Abstract

Space financing, whereby a satellite operator uses a space asset as collateral or security, is one typical means of providing assurance to prospective creditors. While there are currently no clear rules to define the rights and obligations of debtors and creditors in space financing, the United Nations International Institute for the Unification of Private Law (UN1DROIT) rightly picked up the initiative to draft a uniform regulatory regime for the recognition and protection of security interests in space assets. This article examines the ongoing drafting process and offers a critical analysis of the main difficulties in this process. The project itself can be seen as a breakthrough in space legislation history. In this regard, this article argues that the project has shown a unique approach for international legislation in the field of space commercialization.