Question Period Note: Bill C-28, Canadian Space Launch Act

Bill C-28, Canadian Space Launch Act

• This Act would provide a comprehensive legal framework for space launch in Canada that provides certainty, attracts investment, and adapts to a rapidly changing technological landscape.

• A comprehensive legal framework would unlock new economic opportunities and partnerships, retain Canadian investments at home, and position Canada to nurture a domestic space economy estimated to reach $40 billion by 2040.

• This work directly supports the Department of National Defence, specifically the responsive, sovereign launch capability that Canada requires to safeguard the critical space assets that Canadians increasingly rely on in their daily lives.

On April 21, 2026, the Minister of Transport introduced Bill C-28, the Canadian Space Launch Act. Second Reading for the bill began on April 28, 2026, and is ongoing.

The objective of this measure is to establish a clear and modern legislative foundation that enables Transport Canada to safely regulate and oversee space launch and re-entry activities conducted from Canadian territory. Canada’s current legislative framework was designed for traditional aviation and does not adequately address the unique risks and operational realities of space launch and re-entry. This has limited the Government’s ability to provide regulatory certainty, manage liability risks, and support the growth of a domestic launch sector. The proposed amendments would address gaps by creating authorities tailored to space launch and re-entry activities, enabling Canada to keep pace with international partners and support a competitive and secure space sector.

The proposed amendments would modernize existing legislation in several key areas:

• Establish a dedicated authorization framework for launch and re-entry activities.
• Introduce a modern financial responsibility and liability framework.
• Expand authorities to manage land use and safety around launch and re-entry sites.
• Clarify how space launch and re-entry activities are treated under federal transportation legislation.
• Strengthen the Minister's emergency authorities by ensuring they clearly apply to launch and re-entry activities.
• Provide authorities to make regulations to implement Canada's international obligations related to launch and re-entry activities.

The proposed amendments would come into force upon Royal Assent.

Following legislative approval, Transport Canada would develop and implement supporting regulations in consultation with federal partners, provinces, industry, and international allies.

Supporting Facts and Figures

• The initiative would set the stage for establishing appropriate regulatory conditions to support market access and growth in key Canadian industries, including aerospace and satellite communications, contributing to the expansion of the domestic space economy to an estimated $40 billion by 2040. Projections from the Conference Board of Canada indicate that Spaceport Nova Scotia alone would contribute $171 million to Canada’s GDP and support an average of 1,608 full-year jobs nationwide during construction. When fully operational, spaceport operations would add approximately $300 million annually to Canada’s GDP.

• Between 2019 and 2024, Canadian satellite companies and government agencies spent nearly $140M on foreign launch services (an annual average of $23.1M) – revenue that could have stayed in Canada. Offshoring of revenue to pay for foreign launch services should continue to intensify as the demand for launch grows. For example, Telesat – who received a loan of $2.1B by Canada and $400M by Quebec to develop its new lightspeed constellation - recently reached agreement with SpaceX for 14 launches in the United States valued at nearly $1.4B.