Prime Minister Mark Carney’s recent speech on defence and security makes clear that the federal government is focused on protecting and enhancing Canada’s sovereignty and economic prosperity. It also demonstrates that the government understands Canada is in a moment. The extent to which this pivotal moment offers massive upside for Canada, but equally significant downside if we fail to seize it, cannot be overstated. The stakes are high.
The Canadian space ecosystem is on the cutting edge of innovation. Canada’s space innovators stand ready to tackle Canada’s most challenging issues from bolstering national defence, preserving our sovereignty, driving economic growth, protecting our environment, and building the dual-use digital infrastructure required to provide enhanced connectivity to our nation and monitor our vast territory.
A radically shifting geopolitical environment makes Canada’s sovereign defence capabilities and contributions to allied efforts an overriding priority. An intensified focus on the Arctic—accelerated by climate change and the increased accessibility of northern waterways—has drawn heightened attention from Canada’s allies and adversaries. Our new government has committed to addressing the threats to our sovereignty posed by the latest geopolitical shifts through a proposed multibillion dollar defence investment where Canada will finally meet the NATO commitment of spending at least two per cent of GDP on defence this year.
Canada’s space industry supports the government’s renewed focus on national and allied security. Space-based capabilities underpin and enable all military operations and are the linchpin of a modern Armed Forces and essential to NORAD and NATO modernization.
The Carney government’s commitments to defence, and more importantly its future execution, are key in ensuring Canada’s sovereignty and security moving forward. Importantly, there is hope for bipartisan collaboration on this pressing issue. During the Spring election campaign, the Conservative platform outlined several significant commitments regarding defence and security.
Bolstering our national security does more than safeguard Canada, it directly accelerates our economic prosperity by spurring advanced infrastructure, innovation, and high‑value jobs. The Canadian space sector today ranks among the best in the world and currently contributes nearly $3-billion annually to Canada’s GDP. With the global space economy projected to reach $2-trillion over the next decade or two, Canada should aim to be among the leading contributors to that growth. According to Deloitte Canada, with enhanced investment and strategic policies, our nation’s space sector could grow to $40-billion by 2040.
To meet this moment, the government will need to be a key partner to industry and will require focused investment in innovations being developed here at home, such as sovereign Canadian low Earth orbit satellite communications, Earth and space observation, robotics, and even launch capabilities. Experience shows that every dollar invested in space generates a multiple return in economic output, strategic capability, and high‑skill employment.
While Canada leads in space technology, our country’s procurement mechanisms have not kept pace. The government has been unable to access breakthrough commercial space innovations due to the long procurement cycles that make government space programs outdated by the time of deployment. Both established firms and emerging ventures need a streamlined, accelerated pathway from lab to launchpad. As outlined in a recent Novaspace whitepaper; “Canadian space companies are at a clear disadvantage in the global market, where international competitors benefit from far greater and more favourable forms of government support.”
We are hopeful that the government’s proposed Defence Procurement Agency, Defence Industrial Strategy, and made-in-Canada procurement strategy will close this gap and convert Canadian ingenuity into deployable capability at the speed of relevance. We agree with the Liberal Party’s recent platform; “leveraging the government’s purchasing power to drive Canadian innovation, solving Canadian problems in new ways” is exactly what we need at this moment. Prime Minister Carney laid out the challenge even more bluntly; “We should no longer send three-quarters of our defence capital spending to America.”
Moreover, Space Canada strongly believes that the previously announced commitment to create a National Space Council will ensure a whole-of-government approach to prioritize space-related investments in solving our biggest challenges. The time to create this internal body in order to move nimble on the opportunities space represents is now.
Looking ahead, the outlook for Canada’s space sector is exceptionally bright. Canadian firms are ready to deliver advanced capabilities to the Government of Canada and to export them to the world—all while creating good-paying jobs for Canadians.
At this moment of geopolitical transition and economic uncertainty, the Canadian government must lead boldly. We cannot afford to miss this moment, and Canada’s space ecosystem is ready to build, deliver, and make Canada Strong.
Brian Gallant is CEO of Space Canada.
The Hill Times