Canada moves to set up first domestic space launch capability

Canada has introduced the Canadian Space Launch Act, a bill designed to create a domestic framework for space launches and re-entry activities from Canadian territory.

The proposed law would give the federal government the power to regulate and oversee launch and re-entry operations in Canada. It would also establish the authorities needed to give companies clearer rules, support investment and infrastructure development, and help the country meet its international obligations related to space activity.

The legislation addresses a long-standing gap in Canada's space sector. Although the country has a strong record in satellite and space technology, it is the only G7 member without its own launch capability and has relied on foreign countries, most often the United States, to place payloads into orbit.

Ministers framed the bill as both an economic and strategic measure. They argued that sovereign launch capacity would reduce reliance on foreign providers, strengthen control over access to orbit for critical systems, and support a domestic commercial launch and re-entry market that could be worth CAD $40 billion.

Official figures show the space sector already has a significant economic footprint. In 2022, sector revenues were estimated at CAD $5.0 billion, exports reached CAD $2.0 billion, and the industry contributed about CAD $3.2 billion to gross domestic product.

Employment has also grown. In 2023, Canada's space workforce increased by 5.9 per cent to a record 13,888 space-related jobs across the country.

The government cited Deloitte estimates projecting the domestic space market at CAD $40 billion by 2040, while the global space economy is expected to reach CAD $1.5 trillion by 2032. Ottawa argues these forecasts show launch services should become part of Canada's industrial base rather than remain outsourced abroad.

Officials also tied the legislation to broader policy on defence, sovereignty and industrial development. The regulatory structure is being presented as part of the federal government's Defence Industrial Strategy and National Security Strategy, with an emphasis on protecting infrastructure and reducing exposure to external decisions that can delay missions.

Under the proposed framework, launches and spacecraft returns from Canadian territory would be subject to federal oversight. The aim is to allow those activities under controlled conditions while giving the industry a clearer path to build facilities and plan missions.

This has practical implications for companies developing spaceports, launch vehicles and related services in Canada. Without a settled legal regime, it is harder to make the business case for major infrastructure because operators, investors and insurers need clarity on licensing, safety rules and liability.

Minister of Industry Mélanie Joly linked the bill to economic security and industrial policy.

"At a moment of rising global uncertainty, Canada must reinforce its economic security and safeguard its sovereignty by investing in our capabilities," Joly said. "With global demand for space launch services at record levels, Canada is stepping up to meet this demand and ensuring Canadians benefit and lead the growth of this strategic sector."

The legislation follows the federal government's announcement of CAD $200 million for core infrastructure at a Canadian-owned spaceport in Nova Scotia, alongside other space-related measures. That investment was described as a step toward developing a sovereign national launch program.

Nova Scotia has emerged as an early focal point for Canada's launch ambitions, though the bill is national in scope. By creating a legal and regulatory foundation for launch and re-entry, Ottawa is seeking to move the sector from isolated projects to a formal industry structure.