Prepare for Launch: ISED Consults on a Potential Space Act

On October 20, 2026, Innovation, Science and Economic Development Canada (ISED) published its Consultation on Legislative and Regulatory Modernization for Space Activities (Consultation), which seeks input on the potential modernization of Canada’s legislative framework for space activities through the creation of a new Space Act. The Consultation stems from longstanding concerns from industry that outdated, overlapping and fragmented requirements could slow the commercialization of new in-space and supporting terrestrial activities in Canada.

Policy Considerations

ISED highlighted three key policy objectives of any future Space Act:

1. Support growth and competitiveness in Canada’s space sector through a streamlined regulatory framework
2. Protect Canada’s sovereignty and national interests, including in relation to security, defence, foreign policy and public safety
3. Reinforce Canada’s role as a responsible space nation by upholding Canada’s international treaty obligations and promoting the responsible and sustainable use of outer space

Canada’s current regulation of space-related activities relies on a patchwork of instruments, including spectrum licences issued by ISED under the Radiocommunication Act, and licences to operate a remote sensing space system issued by the Minister of Foreign Affairs under the Remote Sensing Space Systems Act. In ISED’s view, this fragmented approach could “place Canadian firms at a competitive disadvantage, discourage investment, and create incentives for companies to pursue opportunities in jurisdictions with more streamlined and predictable regulatory regimes.”

The emphasis on the protection of sovereignty and national interests arises at a time of changing geopolitical circumstances for Canada. It also aligns with ISED’s new Positioning, Navigation and Timing Resilience Framework (PNT Framework), which was published on the same day but separately from the Consultation. The PNT Framework sets out Canada’s approach to strengthening the resilience of positioning, navigation and timing (PNT) services, with the aim of helping to protect the safety, security and economic well-being of Canadians. PNT services, which are commonly delivered by Global Navigation Satellite Systems (GNSS) such as the United States’ Global Positioning System (GPS), are relied upon across many critical sectors. The PNT Framework calls for the establishment of a National PNT Office within ISED, and suggests that ISED will consider “the use of diverse PNT sources coupled with the development of sovereign PNT capabilities.”

Possible Legislative Approaches

Through the Consultation, ISED is requesting feedback on the scope of in-space and underlying services and activities that would be governed by a new legislative framework. The Consultation offers several examples of such services, including satellite communications, Earth observation and analytics, PNT, research, space-based energy systems, ground control and operation of spacecraft, and virtual activities such as the use, storage, transmission and creation of data.

ISED is also soliciting input on two mutually exclusive possibilities for the structure of a future Space Act:

• Comprehensive Space Act: a single statute that would establish an overarching framework for space activities
• Targeted Space Act: a narrower statute that would govern only specific activities not already governed under other existing frameworks

In the comprehensive scenario, ISED is proposing to reallocate certain requirements that are contemplated under other existing regimes into a new streamlined legislative framework governing space-related activities. The powers of the Minister of Foreign Affairs under the existing Remote Sensing Space Systems Act would fall entirely under the new framework. Some existing conditions of the spectrum licence issued under the Radiocommunication Act would also be moved to the new framework. For example, obligations relating to collision avoidance, space debris mitigation and end-of-life disposal would be addressed under the Space Act, while spectrum licence conditions would be reduced to issues pertaining to spectrum management. However, the Minister of Transportation’s powers under a potential Canadian Space Launch Act, which is currently before Parliament, would not be impacted.

Under either scenario, ISED is contemplating imposing new requirements on licensees related to insurance and indemnification, security, and responsible conduct and sustainability.

A New Licensing Approach

ISED is also proposing to rethink how space activities would be authorized. Key elements of a new licensing framework include:

• Mission-based licensing: A single licence would authorize a space mission falling within the scope of the Space Act, rather than multiple licences authorizing individual activities or actions in space. A space mission would encompass a collection of space activities that jointly serve a specific purpose or goal.
• Lifecycle review: Authorization would generally consider activities across the various stages of the mission lifecycle, including design, payload deployment, commissioning, operations, mission modifications, decommissioning and disposal.
• Outcomes-based requirements: Rather than setting prescriptive requirements at each stage, ISED would review the mission lifecycle based on expected outcomes, with a view to ensuring an adaptable, flexible and technology-neutral framework.
• Risk-based process: The authorization process would depend on a risk assessment of the mission that would examine, among other things, the nature and complexity of the mission, the potential for disruption of other services, and the operator’s experience and compliance history.
• Single window: While certain operators may still require authorizations under multiple regulatory frameworks (such as approvals related to launch/re-entry through potential amendments to the Aeronautics Act through the Canadian Space Launch Act, spectrum use through the Radiocommunication Act, and space activities through the Space Act), ISED is considering implementing a “single-window model,” under which applicants requiring authorizations from multiple federal departments could address their application to a single government body that would ensure a coordinated review of applications.

Next Steps

Comments on the Consultation are due by December 21, 2026. ISED may undertake additional consultations as its work progresses. The Consultation builds on other ongoing ISED consultations, including in relation to spectrum use for mobile satellite services and for launch vehicles and variable trajectory spacecraft.

The Consultation is a preliminary step in the modernization of Canada’s legislative approach for space activities. While ISED is asking for comments on suggested approaches for a new legislative framework, any proposed legislation would ultimately need to be tabled as a bill, reviewed by the House of Commons and Senate, and adopted by Parliament. That said, the Consultation will likely play an important role in shaping future legislative and regulatory initiatives for the Canadian space sector.

For more information, please contact the authors or any other member of our Communications or Technology groups.