Bill C-28 – Canadian Space Launch Act: Legislative Overview

On April 21, 2026, the federal government introduced Bill C-28, the Canadian Space Launch Act, at first reading in the House of Commons. The bill would establish Canada’s first dedicated federal legislative framework for space launch and re-entry activities carried out from, or into, Canadian territory. Rather than creating a standalone act, it does so primarily by amending the Aeronautics Act,¹ with related amendments to the Carriage by Air Act,² the Canada Transportation Act³ and the Secure Air Travel Act.⁴

For industry participants, the bill is significant because it marks a shift from ad hoc oversight under aviation legislation to a statutory framework tailored to launch vehicles, re-entry vehicles, launch and re-entry sites, and associated liability and financial responsibility issues.

Purpose and structure of the bill

The bill’s stated purpose is to establish a legislative framework for space launch and re-entry activities in Canada. The summary of the bill makes it clear that the proposed regime is centered on amendments to the Aeronautics Act, including new concepts such as launch vehicles, re-entry vehicles, certified launch sites and certified re-entry sites, along with new ministerial and regulatory powers relating to launch and re-entry activities.

Importantly, Bill C-28 does not itself create a complete operational code for launches and re-entries. Instead, it lays the statutory groundwork for a regulatory regime by expanding the Governor in Council’s and the Minister of Transport’s powers in several key areas, including permitting, site certification, liability, financial responsibility, indemnification, emergency stop powers and zoning controls.

Key amendments

1. Launch and re-entry activities brought within the Aeronautics Act

The bill amends the Aeronautics Act so that “aircraft” includes launch vehicles and re-entry vehicles, and “airport” excludes certified launch and re-entry sites. It also authorizes the Governor in Council to define key terms such as “launch,” “launch vehicle” and “re-entry vehicle” by regulation, while providing transitional definitions in the bill itself.

2. New permitting and site certification framework

Bill C-28 introduces statutory authority for permits and notices relating to launches from within Canada and re-entries into Canada, as well as certificates authorizing the use of aerodromes as launch or re-entry sites. It also expands regulation-making powers governing the issuance, renewal, amendment, suspension, transfer and cancellation of those instruments.

This signals that participation in Canadian launch or re-entry activity will depend on a future federal permitting and certification architecture, but the operational details of that architecture will largely depend on regulations that have not yet been published.

3. Liability, indemnification and financial responsibility

The bill gives the Minister of Transport authority, in certain circumstances and where it is in the public interest, to indemnify owners or operators against third-party liability arising from launch or re-entry activities. It also authorizes the Minister to require owners or operators to indemnify the Government of Canada, including in relation to claims arising under the Convention on International Liability for Damage Caused by Space Objects.

In addition, the bill creates regulation-making authority for a distinct financial responsibility regime for launch and re-entry operators with regard to liability to third parties for loss or damage caused by such activities. It creates the framework for the Governor in Council to establish the minimum amount of those financial responsibilities while also simultaneously creating an exemption and downward adjustment regime on a case-by-case basis in matters of public interest. The bill therefore establishes the legal basis for such requirements but does not itself prescribe a fixed insurance regime.

4. Emergency and zoning powers

Bill C-28 would allow the Minister to stop launches, re-entries or related activities for safety or security reasons. It also extends the existing zoning framework in the Aeronautics Act to certified and designated launch and re-entry sites, including measures to prevent incompatible nearby land use and mechanisms for agreements with provincial authorities.

5. Related amendments to other statutes

Bill C-28 also makes targeted amendments to three other federal statutes in order to separate launch and re-entry activities from the ordinary aviation and air transport regime.

Under the Carriage by Air Act, the bill clarifies that references to “aircraft” do not include launch vehicles or re-entry vehicles. Under the Canada Transportation Act, the definition of “air service” is amended so that services provided by launch vehicles or re-entry vehicles are excluded. Under the Secure Air Travel Act, the definition of “air carrier” is adjusted so that launch vehicles and re-entry vehicles are likewise carved out.

Context and policy background

Until now, Canada has not had a dedicated statutory regime for space launches and re-entries and has instead relied on existing aviation legislation and interim administrative arrangements to oversee such activities. Bill C-28 is best understood as the legislative culmination of the federal government’s effort, formally launched in 2023,⁵ to move from an interim case-by-case authorization model toward a formalized federal framework for launch and re-entry activities conducted from Canadian territory.

From a policy perspective, the bill reflects a broader federal objective of developing sovereign Canadian launch capability, reducing reliance on foreign launch services, and creating the regulatory certainty needed to support domestic investment, infrastructure development and commercial growth in the space sector. The government has also tied the initiative to national security, economic resilience, critical infrastructure protection and Canada’s ability to meet its international obligations, while positioning Canada as a more credible long-term partner in the growing global space economy.⁶ For legal and commercial stakeholders, the practical significance of Bill C-28 is that it creates a statutory basis for a future regime governing launch and re-entry authorization, site certification, liability allocation, financial responsibility and land-use compatibility.

Conclusion

Bill C-28 received first reading in the House of Commons on April 21, 2026. It remains at an early stage of the federal legislative process and may still be amended as it proceeds through Parliament.

At this stage, Bill C-28 is best understood as an enabling statute. It establishes the legal architecture for a Canadian launch and re-entry regime while leaving much of the operational framework to be developed through regulations and implementation measures.

Footnotes

1. R.S.C., 1985, c. A-2.

2. R.S.C., 1985, c. C-26.

3. S.C., 1996, c. 10.

4. S.C. 2015, c. 20, s. 11.

5. Transport Canada, “Government of Canada supports commercial space launches in Canada,” (January 20, 2023).

6. Transport Canada, “Minister MacKinnon announces sovereign space launch capabilities through the Canadian Space Launch Act,” (April 21, 2026).

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