Background
Canada’s proposed “space age” legislation is one step closer to fruition, as the federal government seeks to create Canada’s first dedicated legal framework for spacecraft launch and re-entry on Canadian soil. There is no question that Canada has played a significant role in astronautical innovation, exploration, and research. However, it is somewhat surprising that Canada is the only G7 country without a dedicated domestic launch capability. Currently, Canadian companies within the industry largely rely on foreign launch sites.
Proposed Amendments
On April 21, 2026, Bill C-28, an Act to amend the Aeronautics Act and other Acts was introduced to the House of Commons and passed its first reading. In addition to proposed amendments to the Aeronautics Act, Bill C-28 would amend the Carriage by Air Act, the Canada Transportation Act, and the Secure Air Travel Act. This enactment would provide the Minister of Transport new powers to not only oversee Canada’s emerging commercial space industry, but to also provide it with broad authority to regulate certain activities.
Bill C-28 establishes certain rules for various space-related activities, including but not limited to:
- rocket launches and landings;
- commercial space launch facilities;
- operator licensing and financial responsibilities;
- compensation and indemnification; and
- emergency shutdowns for security or safety concerns.
Notably, proposed changes to the Aeronautics Act would expand the definition of an “aircraft” to include launch vehicles, such as rockets or other vehicles designed to travel to Earth’s orbit or beyond, as well as re-entry vehicles that are designed to return (substantially intact) to Earth.
These updates create ripple effects across other aviation legislation. Proposed amendments to the Carriage by Air Act (which governs carriers’ liability to passengers engaged in international travel) would clarify that a reference to “aircraft” within that Act does not include a launch vehicle or re-entry vehicle within the meaning of the Aeronautics Act. Further, the Canada Transportation Act would clarify that an “air service” refers only to services operated by aircraft other than launch or re-entry vehicles. Similarly, amendments to the Secure Air Travel Act would make clear that references to aircraft within the definition of “commercial air service” in that statute specifically exclude launch and re-entry vehicles (despite the definition of “air carrier” in the Secure Air Travel Act having the same meaning as s.3(1) of the Aeronautics Act.)
Further, Bill C-28 provides a framework for liability and indemnification for launch and re-entry activities. The proposed amendments will allow the federal government, when deemed in the public interest, to financially protect aerospace companies conducting spacecraft launch and re-entry activities from certain third-party liability claims while also ensuring that those companies can be made to reimburse the federal government for any costs or losses associated with or caused by their operations. The protection of a nascent industry in this manner echoes back to the first airlines to operate internationally and the Warsaw Convention (which capped the airlines’ liability to passengers in the event of an accident).
As Canada moves toward establishing certified spaceports, Bill C-28 further provides the Minister of Transport powers to create zoning and land-use regulations around launch and landing sites, such as regulations preventing lands adjacent to or in the vicinity of a designated launch site from being used or developed in a manner that is incompatible with such operation(s).
Conclusion
Bill C-28 is currently at second reading debate in the House of Commons. If passed, the legislation would mark a foundational shift in Canada’s aerospace regulatory landscape and will allow Canada to participate more directly in the rapidly expanding global commercial space economy.
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