Space Protection Initiative

Proposal – Funding the Next Phase of the Space Protection Initiative / Stopping the increase in space debris by deploying Space Debris Removal Insurance Bonds

Space sustainability is fast becoming one of the defining issues of the 21st century. With thousands of defunct satellites and orbital fragments posing increasing risks, space debris threatens not only future exploration but also vital services such as communications, navigation, and climate monitoring. The Space Protection Initiative, originally championed by the 695th Lord Mayor as a thematic focus for the City and supported by Z/Yen during that term, continues to be actively developed and led by Z/Yen today.

Space observation and infrastructure already contribute to 40% of the UN Sustainable Development Goals, particularly those involving climate action, innovation, and sustainable consumption. As Earth’s orbital commons come under strain, coordinated financial and regulatory frameworks are urgently needed to protect this vital environment.

At the heart of the initiative is the proposal to develop Space Debris Removal Insurance Bonds (SPADRIBs) - surety-style financial instruments inspired by models used in decommissioning oil rigs and mines. These bonds aim to make space operators financially responsible for clearing debris, creating economic incentives for cleaner missions.

This slide deck summarises the situation as of October 2024.

Since launch, momentum has grown. A cross-disciplinary coalition of technologists, insurers, policymakers, and academics has formed to explore the technical and financial feasibility of SPADRIBs. Early-stage modelling is underway to understand risk profiles, retrieval costs, and multi-mission efficiencies. Simultaneously, the UK Space Agency has funded two Phase B Active Debris Removal studies with Astroscale and ClearSpace, both working towards demonstration missions by 2026 to remove legacy UK satellites.

The insurance industry has signaled conditional backing. In 2023, a collective 'invitation to treat' was issued offering up to USD 500 million per operator for third-party debris removal, contingent on regulatory and technical benchmarks. Political interest is rising, with MP Mark Garnier suggesting such instruments be dubbed “space junk bonds”.

Since 2023, engagement has deepened. Key milestones include a Mansion House coffee colloquy in December 2023, a Davos panel in January 2024, and the Lord Mayor’s Science & Innovation Banquet in June 2024, where Professor Manahel Thabet launched the Commonwealth Space Collaboration Initiative, supported by all 56 Commonwealth nations. The initiative was further bolstered by a World Economic Forum workshop titled “Financial Space Debris Mechanisms.”

We are now seeking funding and strategic support to move into pilot and regulatory phases.

What funding will support:

Formal design and regulatory engagement for SPADRIBs
Development of pilot schemes and simulated debris removal credit markets
Expansion of modelling tools for risk pricing and underwriting
Public and private sector workshops across G7/G20 nations
Communications campaigns to support adoption within licensing regimes

Our goal is to secure international regulatory endorsement, ultimately making SPADRIBs, or equivalent mechanisms, a licensing requirement for future launches.

We welcome engagement from funders, foundations, insurers, sovereign bodies, and private sector firms aligned with ESG, sustainable finance, or innovation in orbital infrastructure. A letter of support template is available upon request.

The initiative is chaired by Charles Vermont. For further discussions on partnership or support, please get in touch.