EU Space Act & PEFCR4Space: sustainability in the space sector

The European space sector is growing rapidly. From modern satellite constellations to reusable launchers, technological advances are accelerating innovation throughout the industry. At the same time, sustainability is becoming a key requirement for future space activities. With the proposed EU Space Act and the development of the PEFCR4Space, environmental performance of companies is increasingly becoming the focus of regulatory and market expectations.

For companies in the space industry and the associated aerospace supply chain, this marks a turning point: organisations that understand these developments and implement lifecycle-based sustainability assessments early on will not only ensure their regulatory readiness. They also strengthen their position in supply chains, procurement processes and future tenders.

In this article, we show what the EU Space Act and the PEFCR4Space mean for the space sector and what steps companies should take to stay ahead of these emerging regulatory expectations. 

The EU Space Act: Sustainability becomes mandatory

The sustainability requirements

As part of the sustainability objective, the EU Space Act is intended to establish requirements for assessing and reducing environmental impacts from space missions and associated infrastructure.

• The assessment of the ecological footprint of space missions, 
• The application of life cycle approaches (Life Cycle Assessments, LCA) that consider manufacturing, launch, operation, and end-of-life,
  
• The use of harmonised methods for reporting environmental impacts, such as those within the context of established Environmental Footprint approaches at EU level.
  

The specific design of these requirements, as well as potential transitional periods, are currently the subject of further development and coordination at EU level.

It is also important to note: Regulatory developments are unlikely to be limited to operators or launch service providers. Rather, it is to be expected that companies across the entire value chain – particularly suppliers – will increasingly be required to provide reliable environmental data. 

PEFCR4Space: A standardised methodology for calculating the ecological footprint

Why the space sector needs a dedicated LCA methodology 

• Highly complex, global supply chains
• Specialised materials and one-off production rather than mass manufacturing
• Additional emissions from rocket launches
• Operation of space missions and ground infrastructure
• Particular end-of-life challenges

This is precisely where PEFCR4Space comes in: the EU’s PEF methodology is tailored to the specific conditions of the space sector. The aim is to establish a uniform and robust framework that allows environmental impacts throughout the entire life cycle to be consistently measured and compared. 

For companies, this goes beyond methodology: sustainability claims become more verifiable, reporting more comparable – and blanket ‘green’ claims significantly harder to make. Companies that wish to remain competitive in the future will need reliable data across the entire value chain. 

What PEFCR4Space means for companies: Three key impacts

PEFCR4Space is currently under development and is expected to be finalised by 2027. However, significant impacts on the aerospace ecosystem are already becoming apparent.

1. Environmental data in supply chains

It is foreseeable that prime contractors and major providers of space systems will increasingly require environmental data from their suppliers in the future. 

• Electronics and semiconductors
• Composite materials
• Propulsion components
• Systems for ground infrastructure
• Space-related software and services

Suppliers who can provide robust and consistent environmental data will secure competitive advantages at an early stage.

2. Sustainability in procurement and tenders

Institutions such as the ESA, the European Commission and national space agencies are currently developing methodological foundations to enable a more systematic assessment of environmental impacts. Against this backdrop, it is to be expected that environmental performance will increasingly be taken into account in procurement decisions in the future.

Companies that can demonstrate a lower environmental footprint may gain a competitive advantage in tenders and long-term partnerships.

3. Ecodesign in space technology

Environmental assessments will increasingly influence technical decisions, particularly in the context of standardisation and future procurement requirements. 

• Reusable launch systems
• Lightweight materials
• Optimised energy and thermal systems for satellites  
• Improved end-of-life strategies

As a result, sustainability in aerospace is evolving from a purely evaluative metric into a driver of technological innovation. 

Acting early: Sustainability as a key to success for the European space sector

The European space sector is entering a new era. Sustainability, transparency, and environmental responsibility are becoming increasingly important – both from a regulatory and a market perspective.

Although the EU Space Act and the PEFCR4Space are still under development, early preparation is crucial for companies. Environmental assessments for highly complex space technologies are time-intensive, requiring comprehensive and precise data collection across international supply chains.

Early adopters benefit from clear strategic advantages:

 ✓  Stronger market position: Demand for robust environmental information will increase significantly across the entire value chain. Companies that can reliably provide environmental footprint data for their products and systems will strengthen their position vis-à-vis prime contractors and system integrators and secure a decisive edge in future projects.

 ✓  Regulatory resilience: Those who familiarise themselves with upcoming requirements at an early stage can avoid short-term implementation pressure and integrate new demands efficiently and proactively into existing processes.

 ✓  Identification of environmental hotspots: Systematic life cycle analyses reveal key levers for reducing emissions and resource use – whether in manufacturing, material usage, or energy consumption. This unlocks optimisation potential and enables targeted reduction of supply chain risks.

 ✓ Credible communication: Substantiated data instead of vague promises: Transparent and verifiable environmental metrics enhance the credibility of sustainability communications and build trust with customers, investors, and public institutions.

Conclusion: Companies that integrate life-cycle thinking and thorough environmental assessments early will successfully position themselves in a changing market environment and actively shape the future of the aerospace industry.

Do you need support? 

Would you like to incorporate ecological metrics into a development project or do you require support with the calculation and reporting of your environmental balance? Please do not hesitate to get in touch.

Your contact:
Dr. Denise Ott
Head of Sustainability
denise.ott@eura-ag.de
+49 3682 400 62-26

Sustainability innovations in the aerospace industry often require significant investments. EurA supports companies in identifying and successfully utilising national and European funding opportunities for sustainability and aerospace innovation projects.

Your contact:
Johannes Schmidt
Head of Aachen Office 
johannes.schmidt@eura-ag.de
+49 241 963 12 10 

• EU Space Act - Defence Industry and Space - European Commission  

• Product Environmental Footprint Category Rules (PEFCR) for the space sector