Canadian Space Launch Act: What Bill C-28 Would Change for Rocket Launches

Canada has a long record in satellites but has never had a law designed for launching rockets from its own soil. Commercial launch proposals have been handled since 2023 under an interim, case-by-case approach. Bill C-28 is the government’s attempt to replace that with a permanent regime, and with a C$200 million federal investment in spaceport infrastructure announced in March, it is now a live commercial question rather than a policy aspiration.

Here is what the bill does, where it sits in Parliament, and the issues that will shape it in committee.

Where the bill stands

Transport Minister Steven MacKinnon introduced the bill on 21 April 2026. Its formal title is An Act to amend the Aeronautics Act and other Acts, with the short title Canadian Space Launch Act. Second reading began on 28 April, when MacKinnon told MPs that Canada was “the only G7 country without its own sovereign space launch and re-entry capabilities”, as SpaceQ reported.

Debate stalled when the House rose for the summer. The Hub’s daily parliamentary guide listed the bill for debate again on 5 October and on 21 October. As at today, the bill’s record still shows it at second reading in the House. If the House passes it at second reading, it goes to committee, then report stage, third reading, the Senate and Royal Assent. A Transport Canada question period note says it would come into force on Royal Assent.

Why Canada needs it

In January 2023 the government announced an interim approach, expected to last three years, under which commercial launches that are “safe, secure and environmentally sustainable” could go ahead “under existing legislation and regulations, on a case-by-case basis”, with an interdepartmental review to check each proposal against domestic law, treaties, national security and foreign policy. The same announcement said the regulatory framework “needs to be modernized”.

The commercial case is set out in the government’s own figures. Transport Canada’s question period note says Canadian satellite companies and agencies spent nearly C$140 million on foreign launch services between 2019 and 2024. The April news release cites a Deloitte projection of a C$40 billion domestic space market by 2040, and a 16 March 2026 announcement by the Defence Minister of C$200 million for core infrastructure for a Canadian-owned spaceport.

There is also a treaty reason. Canada is a party to the Outer Space Treaty, the Rescue Agreement, the Liability Convention and the Registration Convention. Article VI of the Outer Space Treaty requires “authorization and continuing supervision” of national activities in space, and a State from whose territory a rocket is launched is a launching State under the Liability Convention whoever owns the rocket. Without a proper licensing law, Canada would carry that liability with limited legal tools to control it. I explained the treaty basis in our Outer Space Treaty explainer.

How the bill works

The most distinctive choice is structural. Rather than a standalone space act like the UK’s Space Industry Act 2018 or the US Commercial Space Launch Act, Bill C-28 amends the existing Aeronautics Act.

According to the bill’s summary and a legislative overview by Gowling WLG, the main elements are:

Definitions. “Aircraft” would include launch vehicles and re-entry vehicles, while “airport” would exclude certified launch and re-entry sites. The terms “launch”, “launch vehicle” and “re-entry vehicle” can be defined by regulation.

Authorisations. The bill creates powers for permits and notices covering launches from Canada and re-entries into Canada, and for certificates allowing aerodromes to be used as launch or re-entry sites, with regulations governing issue, renewal, suspension, transfer and cancellation.

Regulation-making. It expands the regulation-making powers to cover launches, re-entries, launch and re-entry sites, and the application of certain international agreements and standards.

Appeals. It removes certain launch and re-entry decisions from review by the Transportation Appeal Tribunal of Canada.

Emergency powers. The Minister can stop launch or re-entry activities for reasons of safety or security.

Zoning. The Aeronautics Act’s zoning framework is extended to certified launch and re-entry sites, so incompatible land use around a spaceport can be restricted.

Consequential changes. Launch and re-entry vehicles are taken out of the definitions in the Carriage by Air Act, the Canada Transportation Act and the Secure Air Travel Act, so passenger-airline rules do not apply to rockets by accident.

For comparison with other regimes, see our explainers on UK space licensing and FAA Part 450 launch licensing.

Liability, indemnities and insurance

This is the part most operators and insurers will read first. The bill’s summary says it “authorizes the Minister of Transport to indemnify owners and operators of launch or re-entry vehicles in certain circumstances, and when it is in the public interest, for their liability to third parties”, and to “require the owners and operators in certain circumstances to indemnify the Government of Canada for any liability to third parties”. Gowling notes that the indemnity owed to the government can extend to claims under the Liability Convention.

It also gives the government power to make regulations setting up “a distinct financial responsibility regime that includes the ability to grant exemptions or adjustments in specific cases.” No insurance amounts appear in the bill. In the US, by contrast, the statute ties required insurance to the maximum probable loss calculated by the FAA, and the UK has just published fixed tiers for orbital licences. Operators will not know their exposure in Canada until regulations are drafted. The mechanics of third-party cover are explained in our space insurance explainer.

What the bill does not cover

The bill is about getting to space and coming back. It does not create a general authorisation regime for satellites operating in orbit. Imaging satellites are already licensed under the Remote Sensing Space Systems Act, and radio spectrum is licensed separately. A Canadian company operating a communications or in-orbit servicing satellite would still not be covered by a single space activities licence after C-28 passes.

The criticism

The opposition supports the goal but not the drafting. The Hub’s October summaries of the debate quote Conservative critic Dan Albas as saying his party would not give a “blank cheque”, pointing to the lack of a statutory duty to consult National Defence or CSIS before issuing a licence and the absence of a defined national security clearance, and comparing the bill unfavourably with UK practice. The NDP has questioned how much of the framework is left to regulations.

Those concerns have substance. The bill is an enabling statute: the safety standards, financial responsibility amounts, security screening and much of the licensing process will be written by regulation. That gives Transport Canada flexibility in a fast-moving industry, but it also means Parliament is approving a framework whose content it will not see. With a majority government, The Hub expects the bill to pass second reading; the open question is whether committee amendments write security review into the statute.

The US safeguards agreement

A launch law is only part of what a Canadian spaceport needs. SpaceQ reports that Canada announced in August 2024 that “substantive negotiations” on a Technology Safeguards Agreement with the United States were complete, but that as of October 2026 the agreement remains unsigned, with Global Affairs Canada saying it continues “to work towards finalizing the administrative arrangements”. A TSA sets out how US launch technology and data are protected on foreign soil, and without one, US-origin rockets cannot launch from sites such as Spaceport Nova Scotia. SpaceQ also notes that the White House’s updated National Space Transportation Policy, released on 20 August 2026, sets a 120-day review of export policy and controls, due around 18 December, which could affect the agreement.

What I would watch

The second reading vote and the committee referral. SpaceQ expects the bill to go to the Standing Committee on Transport, Infrastructure and Communities. Its witness list will show whether national security agencies, insurers and launch operators get a hearing.

Amendments on security review. A statutory duty to consult National Defence and CSIS, or a defined security clearance for licence applicants, would move Canada closer to the UK and US models. It would also lengthen licensing timelines.

The financial responsibility regulations. The amounts, and how the Minister’s discretion to indemnify is exercised, will decide whether Canadian sites are competitive with US ranges and with launch sites in Europe and Australia. Expect industry to press for published criteria rather than case-by-case decisions.

The TSA. Royal Assent without a signed safeguards agreement would give Canada a legal framework without access to most of the rockets that might use it. Watch for signature after the US export control review due in December.

Anuj KumarEditor-in-Chief

Anuj Kumar is the founder of Legal Desire Media and publishes Fashion Law Journal and Space Law Journal.

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