On March 27, 2026, the government of Japan approved a bill to amend the Act on Launching Spacecraft and Launch Vehicle and Control of Spacecraft (the Space Activities Act). The amendment would represent a shift from the previous “satellite‑centric” regulatory framework to a broader system covering what it calls “Next-Generation Transportation Services,” including rocket reuse, on‑orbit servicing, and return from space.1 For companies currently operating in, or considering entry into, the space sector, this development may reduce business risks and improve regulatory predictability.
Key Amendments and Potential Business Implications
Expansion of Licensing Scope (Test Flights and Rocket‑Only Launches)
Under the current law, launch licenses are premised on “carrying a satellite.” The amendment would explicitly bring test vehicles without satellites and rockets carrying only dummy payloads within the licensing framework.
- Potential Business Impact: If the amendment takes effect, startups and developers would be able to complete regulatory procedures earlier in the demonstration phase, before they are ready to carry commercial satellites.
Establishment of Safety Standards for Reuse and Re-entry
New licensing systems would be introduced for reusable rockets and for capsules that return experimental results or materials from space.
- Potential Business Impact: Clearer safety standards and landing‑site requirements may help streamline legal risks associated with “Return‑to‑Earth” operations.
Expansion of the Government Indemnity System
The amendment would expand the scope of the government indemnity mechanism, under which the government compensates for losses exceeding third‑party liability insurance coverage.
- Expanded Scope: In addition to traditional satellite insertion, accidents occurring during rocket reuse (landing) and object re-entry would be covered.
- Potential Business Impact: Public backing for potentially large liability exposures may make it easier for private operators to demonstrate business stability to investors and insurers.
Mandatory Space Debris Mitigation Measures
In line with international debris mitigation guidelines, the amendment would strengthen requirements for post‑mission disposal and structural design verification to minimize debris generation.
- Potential Business Impact: Compliance‑by‑design may become essential for satellite manufacturers and operators from the earliest development stages.
Outlook
- The bill may pass during the current National Diet session; if that occurs, enforcement may begin in late 2026 or early 2027, following a designated grace period.
- Companies planning space transportation, on‑orbit services, or space‑based material recovery may wish to conduct an early legal review to assess whether their business plans align with the amendment’s requirements for Re-entry Licenses and Government Indemnity.
Reference Resources
For more details regarding this amendment, parties may refer to the following Cabinet Office publications (available in Japanese):
- Cabinet Office: Final Report on the Basic Direction for Reviewing the Space Activities Act
- Cabinet Secretariat: List of Cabinet Decisions (March 27, 2026)
1 For additional background on this topic, see our 2025 GT Advisories, Part 1 and Part 2.