Canada speaks often and proudly about its role in space. The country invests in cutting edge Earth observation missions and supports astronauts who take part in international exploration efforts. Yet behind this national ambition sits a quieter piece of legislation that shapes how commercial space activity unfolds at home. Many in the industry say it influences how fast companies can grow, where they choose to operate, and how competitive Canada can be in a global marketplace.

That legislation is the Remote Sensing Space Systems Act (RSSSA). Created in 2004, it remains one of the central tools guiding how Canadian organizations operate satellites and handle Earth observation data. Its purpose is clear: to ensure that remote sensing activities protect national security and follow responsible data practices. The question today is not whether the Act has value, but whether its design fits the pace and character of modern commercial space activity.

An Act Built for an Earlier Technological Moment

When the RSSSA was introduced, Earth observation was still led by government programs and a small number of established satellite operators. The world was shaped by early 2000s security concerns, and commercial space activity was limited compared to today. The Act helped Canada manage sensitive data, ensure appropriate oversight, and maintain national security safeguards. These goals remain relevant.

What has changed is the technology. Satellites are smaller, cheaper, and launched more frequently. Data can be processed through cloud platforms and shared in near real time. Private companies now drive a large part of Earth observation innovation. The pace is different. The business models are different. The systems are different. It is in this new environment that the Act is often tested.

Where Industry and Policy Tension Appears

Companies that work with Earth observation data describe the licensing process as detailed and sometimes complex. They say the timelines and administrative steps can be difficult to navigate, especially for young companies trying to move quickly. These observations came through clearly in the federal government’s own 2022 review of the Act. In that study, 43 percent of respondents said the regulatory requirements were significant or prohibitive for their operations.

The review did not frame this as a failure. Instead, it highlighted a gap between the original purpose of the Act and the realities of today’s global space economy. Several Canadian companies have spoken openly about the additional planning they must do to account for the licensing process. A few, such as Wyvern, have built parts of their operations outside Canada to help manage timelines. Earlier attempts by international companies to expand operations in the country also encountered delays. These examples illustrate how regulation and business decisions intersect.

How Licensing Timelines Influence Growth

Timing matters in the commercial space sector. Companies compete for contracts, investment, and long term partnerships. When licensing timelines extend for months or longer, it can create uncertainty for teams trying to meet development goals or secure funding. Investors often look for predictable regulatory pathways, and long waits can affect confidence.

Foreign companies also consider licensing clarity before choosing where to build ground stations, data centers, or corporate offices. Some have expressed interest in Canada but ultimately based their operations elsewhere due to the time needed to complete approval steps. These decisions affect job creation, research partnerships, and local innovation ecosystems.

None of these outcomes are tied to blame. They simply reflect how regulatory processes shape practical business choices.

How Canada Compares Globally

Other countries have updated their regulatory systems in response to the rapid growth of commercial space activity. The United States has reformed NOAA’s remote sensing rules to provide clearer guidance and faster processing times. The United Kingdom is known for having a streamlined commercial licensing framework under its Space Industry Act. Several European nations offer predictable application windows that allow companies to plan ahead.

In many cases, licensing abroad is completed within weeks or a few months. Canadian operators report much longer periods. This difference is one reason industry associations continue to call for modernization. It is also why some Canadian founders encourage emerging space companies to examine international options before choosing where to operate.

These comparisons are not a judgment. They help place Canada’s experience within the context of global competition and evolving industry expectations.

Short Term Flexibility Through Exemptions

The RSSSA already includes a potential short term tool. The Minister of Foreign Affairs has the authority to grant exemptions for certain activities. Some companies have suggested this as a way to respond to time sensitive needs while longer updates to the framework are under consideration. Exemptions can help reduce uncertainty when applied carefully, although they do not replace broader legislative reform.

This approach shows that flexibility exists within the current system. It also highlights the ongoing balance between safeguarding national interests and enabling commercial growth.

Long Term Possibilities for a More Modern Framework

Many in the sector believe the long term path lies in updating the Act to reflect current technology and business practices. This could involve clearer guidelines, streamlined application steps, and processes designed for companies that operate on rapid development cycles. Any future changes would require collaboration between government, industry, academic researchers, and policy specialists. The goal would not be to reduce oversight, but to ensure that the rules remain effective in a world where satellites are deployed more often and data is shared more widely.

Canada has the scientific talent, engineering strength, and entrepreneurial interest to play a significant role in global Earth observation and satellite innovation. The country’s challenge is to align its regulatory approach with this potential.

A National Choice About Canada’s Future in Space

Canada’s space achievements continue to inspire new generations of engineers and entrepreneurs. At the same time, the country is confronting an important policy question. As technology evolves and commercial activity accelerates, how can regulation keep pace in a way that protects national interests while supporting a competitive industry?

The answer will shape more than individual companies. It will influence jobs, research partnerships, and Canada’s presence in a rapidly developing global sector. The conversation now unfolding across government and industry reflects a shared interest in finding a path that supports responsible growth and ensures Canada remains an active and capable player in space.