Canada opened a consultation on a proposed Space Act on October 22, 2026, asking how federal legislation should authorize and oversee space activities. The consultation examines mission approvals, continuing supervision, insurance, indemnification, and liability limits. It does not enact a new law or replace existing approval processes.
The government is considering two legislative approaches. A comprehensive act would establish a broader framework for space activities. A targeted act would address selected gaps alongside existing legislation. The choice would determine which activities fall under the new framework and how operators interact with the authorities responsible for related approvals.
Authorizing a Mission Across Its Lifecycle
The consultation considers mission-based authorization covering deployment, operations, modifications, and disposal. This approach would connect approval requirements to the activities an operator intends to perform throughout a mission, including changes made after launch.
Continuing supervision would extend government oversight beyond the initial authorization. That distinction matters because a spacecraft’s activities can change during operations. Approval of the original mission would not resolve every subsequent question about its conduct.
The proposed framework also concerns Canada’s international responsibilities. Under Article VI of the Outer Space Treaty, states bear international responsibility for their national activities in outer space, including activities conducted by nongovernmental entities. Those private activities require authorization and continuing supervision by the appropriate state.
A domestic authorization framework provides a mechanism for carrying out that responsibility. It establishes how an operator obtains permission and how the government oversees the activity after permission is granted.
Insurance, Indemnification, and Liability
The consultation addresses financial responsibility through several distinct mechanisms. Insurance can provide funds to meet covered claims. Indemnification concerns an obligation to compensate another party, potentially including the government. Liability limits concern the extent of an operator’s financial exposure under the applicable framework.
These mechanisms answer different questions and should not be treated as interchangeable. An insurance requirement does not, by itself, establish the full extent of legal liability or determine whether the government assumes losses beyond the insured amount. New Space Economy’s coverage of mission approvals and operator liability explains these distinctions within the consultation.
The consultation also raises the relationship between coordinated applications and regulatory authority. A coordinated intake process could simplify the submission of information without necessarily placing every decision under one regulator.
Comments are due December 21, 2026. Existing regulatory processes remain in place during the consultation. The legislative approach, detailed obligations, and associated regulations remain matters for subsequent government decisions.
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