Accelerating investment in the final frontier: leveraging administrative approvals to bolster commercial space development

In the American economy, property rights are so fundamental to commercial activities that we often take them for granted. Without these fundamental tenets of society, development and commerce would be impossible. Try to imagine a farmer or entrepreneur investing in economic activity without clear rights to the very property that underpins their business. However, despite the obvious benefits of property rights to economic growth, we have failed to implement a regime in space that would provide similar incentives for progress and investment. If a robust and truly commercial ecosystem is to be developed on the moon, Mars and beyond, we cannot ignore the need to replicate the incentives that have worked so well here on Earth.

Over a decade ago, as an attorney working for Bigelow Aerospace, I filed a payload review request with the Federal Aviation Administration’s Office of Commercial Space Transportation (FAA AST) seeking approval for lunar surface operations. This aspect of the payload review was relatively traditional; however, the request also sought assurance from the FAA AST that they would not approve other activities via payload review requests or launch licenses that would interfere with the lunar operations described in the Bigelow request. After two years of work and collaboration with the FAA AST, I received a positive response. This was a foundational first step toward responsible lunar governance, and one that I hope we can build upon here in the United States and globally. No less than the future of equitable and organized lunar operations is at stake. A de facto framework established after the fact would be a disaster for multi-national lunar development, and time is running out. 

Specifically, leadership at the FAA, the Department of Commerce, the Department of State and NASA should collaborate to provide incentives to any company that conducts activities on a celestial body (whether it be the moon, Mars or an asteroid) that results in an improvement of that body or provides potential benefits to us here on Earth. For example, the extraction of helium-3, rare Earth elements, water ice or the provision of electricity, air or fuel, are all improvements that should be incentivized. Similar to the payload review request determination that I received in 2015, the U.S. government should provide a company that conducts beneficial extraterrestrial surface or sub-surface activities with administrative rights to exclusively operate in an area for an extended period to incentivize investment and development. Additionally, if a company makes an improvement on a celestial body, such as establishing solar arrays in an area or conducting resource extraction or in-situ resource utilization there, the FAA, Department of Commerce and the FCC should agree not to issue licenses for activities that would interfere with the company’s operations for, at a minimum, the duration of the proposed operations.

Subsequent to such a system being established, the Department of State could then work with international partners to establish reciprocal recognition of such administrative rights to deconflict global activities in keeping with Article VI of the Outer Space Treaty, which requires nations to provide authorization and continuing supervision of their private sectors in space. Reciprocal recognition could begin with the Artemis Accords signatories, or a subset thereof, with a focus on nations that have already adopted forward-leaning space resources extraction and utilization policies such as Japan, Luxembourg and the United Arab Emirates. Ideally, these administrative rights could be commoditized and used to secure additional funding or as a catalyst for initial investments. 

This is not a theoretical policy issue. The technical feasibility for commercial activity on the lunar surface is a present reality. For example, at Redwire, we recently announced a partnership with ispace U.S. to pursue Commercial Lunar Payload Services missions as well as even more ambitious activities such as a commercial lunar sample return mission. Redwire is also developing concepts to demonstrate its Roll Out Solar Arrays on the lunar and Martian surface to provide power stations, and eventually entire power grids, in both locations. Providing Redwire and other companies, or their international sponsors, with exclusive administrative rights to extraterrestrial surface and sub-surface areas where they operate could act as a critical catalyst for investment and innovation. 

The Artemis Accords took an important first step by asserting the commonsense contention that extraterrestrial resources can be extracted and utilized without inherently violating any aspect of the Outer Space Treaty. Leveraging administrative rights in the manner described herein could help to ensure that America, and the Artemis Accords family of nations, pursue lunar and Martian development with robust resources and alacrity. 

The development of the lunar surface and subsequently Mars is inevitable — and closer than many realize. It will either happen under a free-market framework based on proven terrestrial principles of development, or an ad hoc framework whereby authoritarian regimes annex large areas through decree and aggressive defense. A race to develop the moon and Mars is already underway, and democratic rule-based governance must not cede either celestial body to geopolitical rivals. China has demonstrated great prowess and progress, particularly relative to lunar operations. They are one of the few current world powers that missed the last global era of expansion, and China will not miss such an opportunity again. With budget limitations here in the U.S., China is on a trajectory to potentially outspend America in space. Therefore, to prevent Chinese dominance, we must out-entrepreneur them. Our journey is to the moon and Mars, but by leveraging administrative approvals to coordinate and incentivize commercial space development, we can ensure that humanity’s destination in the final frontier is peace and prosperity. 

Mike Gold is the President of Civil and International Space at Redwire.

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