Junk in space is an increasingly severe problem, as both the quantity of useless debris and the number of useful satellites increases. Aside from international censure, there isn’t especially much that can be done at present to punish those who make the problem worse, as China did when they blew up one of their satellites in 2007.
A good international approach to mitigating the problem might resemble the following: an international agreement among space-faring states to avoid the production of such debris, coupled with a penalty system for situations in which it occurs. The money from the fines could be put into an insurance fund. Then, when collisions take place between unmanned satellites or manned space vehicles, some level of compensation could be paid out of that fund.
Setting up such a system would require the support and goodwill of quite a number of states. Nonetheless, it might help make the regions of space closest to our planet somewhat more orderly and well-governed.