This article was originally published by Law360 Canada, part of LexisNexis Canada Inc. Click here to read the article on Law360 Canada.
Canada is the only G7 country without a dedicated domestic launch capability — for now. The federal government’s proposed “space age” legislation, Bill C-28, the Canadian Space Launch Act, would, if passed, create Canada’s first dedicated legal framework for spacecraft launch and re-entry on Canadian soil and better position Canada to become a leader in the global commercial space economy.
Internationally, Canada has been widely known for its contributions and groundbreaking strides in astronautical innovation, exploration and research, including the advanced robotic Canadarm (1, 2 and 3) and the country’s involvement with NASA’s Artemis II, which was the first crewed flight beyond low Earth orbit since Apollo 17 in 1972. Currently, Canadian companies within the astronautical industry rely on foreign launch sites.
As Canada’s first dedicated legal framework for spacecraft launch and re-entry, Bill C-28 would provide the minister of transport powers to oversee Canada’s emerging commercial space industry and would grant broad authority to regulate astronautical activities.
Proposed amendments by Bill C-28
Bill C-28 was introduced to the House of Commons and passed its first reading on April 21, 2026. It proposes to amend the Aeronautics Act, the Carriage by Air Act, the Canada Transportation Act and the Secure Air Travel Act. Bill C-28 is currently at the second-reading debate stage in the House of Commons.
In short, Bill C-28 would provide substantial new powers to the minister of transport to oversee and regulate Canada’s emerging commercial space industry and various space-related activities, including but not limited to:
- spacecraft launches and landings;
- commercial spaceport operations and facilities;
- operator licensing and financial obligations;
- liability, compensation and indemnification mechanisms; and
- emergency shutdowns for safety concerns and/or matters of national security.
Notably, Bill C-28 expands the definition of “aircraft” in the Aeronautics Act to encompass launch vehicles, such as rockets or other vehicles designed to travel to Earth’s orbit or beyond, and re-entry vehicles, which are designed to return substantially intact to Earth.
These updates create consequential effects across other aviation-related legislation. To preserve the distinction between conventional airplanes or aircraft and the launch and re-entry of spacecraft, Bill C-28 introduces amendments to related statutes to the Aeronautics Act, including:
- Carriage by Air Act (which governs carriers’ liability to passengers engaged in international travel): A reference to “aircraft” within this Act does not include a launch vehicle or re-entry vehicle within the meaning of the Aeronautics Act.
- Canada Transportation Act: An “air service” in this Act refers only to services operated by aircraft other than launch or re-entry vehicles.
- Secure Air Travel Act: The definition of “air carrier” continues to have the same meaning as s. 3(1) of the Aeronautics Act, however, references to “aircraft” within the definition of “commercial air service” in that subsection excludes launch and re-entry vehicles for the purposes of this Act.
Additionally, 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 and indemnify aerospace companies/operators 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 Crown for any costs or losses associated with their operations. The protection of a nascent industry in this manner, that is, facilitating the growth of a strategically important industry by managing potentially catastrophic liability risks during its formative stages, echoes back to the first airlines to operate internationally and the Warsaw Convention. The Warsaw Convention limited carriers’ exposure to passenger claims in the event of an accident, where the passenger was scheduled to fly internationally.
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, which would permit the federal government to regulate or prohibit adjacent land uses that could interfere with, or pose risks to, launch and re-entry operations.
Measures like these mirror the longstanding land-use principles found in airport planning, paving the way for astronautical infrastructure to become a permanent component of Canada’s transportation network.
Conclusion
The proposed amendments signal a substantial evolution in Canadian aerospace regulatory landscape and would establish the legal and institutional foundations necessary for Canada’s direct participation in the burgeoning global commercial space economy, if passed.
This article was originally published by Law360 Canada, part of LexisNexis Canada Inc. Click here to read the article on Law360 Canada.
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