Environmental Governance in Orbit: Navigating EIA and ESG Pressures in the NewSpace Industry

As private equity and venture capital investment in the NewSpace sector rapidly increases, investors are placing growing emphasis on Environmental, Social, and Governance (ESG) compliance. A key tool in assessing environmental responsibility is the Environmental Impact Assessment (EIA). However, current EIA frameworks are fragmented, Earth-focused, and inadequate for evaluating the impacts of space activities. This paper examines how this regulatory gap hinders both sustainability goals and investor confidence. Drawing on legal instruments such as the Outer Space Treaty, Moon Agreement and the Long-Term Sustainability Guidelines, the paper advocates for the development of soft-law-based extraterrestrial EIA guidelines. Institutions such as the Inter-Agency Space Debris Coordination Committee (IADC) and United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS) are well placed to lead this initiative. The analysis also considers broader structural issues affecting the implementation of ESG in the space sector, including the resource limitations of space start-ups and the growing expectations of institutional investors. Considering these factors, the paper recommends the introduction of harmonised standards and soft law guidelines as a realistic and commercially viable first step.