Open your checkbook, please
ESA’s governance structure isn’t favorable for taking quick action. On one hand, ESA member states approve the agency’s budget in multiyear increments, giving its projects a sense of stability over time. However, it takes time to get new projects approved, and ESA’s member states expect to receive benefits—jobs, investment, and infrastructure—commensurate with their spending on European space programs. This policy is known as geographical return, or geo-return.
For example, France has placed a high strategic importance on fielding an independent European launch capability for more than 60 years. The administration of French President Charles de Gaulle made this determination during the Cold War, around the same time he decided France should have a nuclear deterrent fully independent of the United States and NATO.
In order to match this policy, France has been more willing than other European nations to invest in launchers. This means the Ariane rocket family, developed and funded through ESA contracts, has been largely a French enterprise since the first Ariane launch in 1979.
This model is becoming antiquated in the era of commercial spaceflight. Startups across Europe, primarily in France, Germany, the United Kingdom, and Spain, are developing small launchers designed to carry up to 1.5 metric tons of payload to low-Earth orbit. This is too small to directly compete with the Ariane 6 rocket, but eventually, these companies would like to develop larger launchers.
Some European officials, including the former head of the French space agency, blamed geo-return as a reason the Ariane 6 rocket missed its price target.
Toni Tolker-Nielsen, ESA’s acting director of space transportation, speaks at an event in 2021.
Credit:
ESA/V. Stefanelli
With the European Launcher Challenge, ESA will experiment with a new funding model for the first time. This new “fair contribution” approach will see ESA leadership put forward a plan to its member states at the next big ministerial conference in November. The space agency will ask the countries that benefit most from the winners of the launcher challenge to provide the bulk of the funding for the challengers’ contracts.