November 18, 2025 – Longueuil, Quebec
Today, at the SpaceBound 2025 Conference, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, made the historic announcement that Canada will increase its investment to European Space Agency (ESA) programs by $528.5 million. This investment represents a tenfold increase compared to previous contributions and is set to advance research and development of Canadian-made space technologies for both civilian and defence purposes. It will help build an industrial base that is ready and capable of supporting Canada's commercial, defence and security needs.
Canada is navigating a world that is increasingly more complex and more dangerous, one that demands that we explore new approaches to our economy, our national defence and our international partnerships with trusted allies. This includes building a new, ambitious, and more comprehensive partnership with the European Union, its member countries and multilateral organizations.
Canada's longstanding cooperation with ESA provides Canadian companies with privileged access to the European space market. Every dollar awarded to Canadian businesses through ESA contracts generates over three dollars in follow-on sales, benefitting Canadian organizations and injecting value into the Canadian economy. Canada's ESA investment will provide direct opportunities for the Canadian space sector to increase exports, diversify partnerships and promote Canada's cutting-edge expertise and space technology in the European market.
Quotes
“In an increasingly complex world, the Canadian space sector is critical to keeping Canadians safe and secure while also playing a strategic and expanding role in creating jobs and economic benefits. This historic investment to European Space Agency programs creates new opportunities for Canada’s world-renowned space sector to thrive globally, advance technologies and build a competitive and resilient industrial base that serves our national interests.”
The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“Research and development are not luxuries – they are the frontline of defence in a world of emerging threats. Canada’s strength lies in its ability to adapt and lead in a sector defined by rapid advancements. Canada’s close relationship with the European Space Agency allows the Defence Team to present a ready and resilient force, prepared for the future.”
The Honourable David J. McGuinty, Minister of National Defence
“The Canada-ESA collaboration has proven its value over nearly 50 years — helping Canadian companies grow, innovate, and compete globally. By deepening our commitment, we’re ensuring that Canada remains a trusted and forward-looking space partner on the world stage.”
Lisa Campbell, President of the Canadian Space Agency
Quick facts
The Canada-ESA Program, led by the Canadian Space Agency, helps our space sector to build long-term relationships with the European space community, strengthening innovation that both showcases and advances Canada’s technological capabilities.
This agreement has propelled numerous Canadian organizations to significant roles in ESA space missions.
Under ESA’s geographical distribution principle, countries receive industrial contracts in proportion to their financial contribution. This means Canadian companies benefit directly from Canada’s investment by securing ESA contracts, which stimulate innovation and create high-value jobs in Canada.
Canada’s total investment in specific ESA programs will be decided during ESA’s Ministerial Council, taking place on November 26–27 in Bremen, Germany.
The Canadian Space Agency will hold an information session for Canada’s space sector on December 11, 2025 to provide stakeholders with details on Canada’s subscriptions to ESA optional programs and how to apply for contracts.
Examples of areas where dual-use technologies are used include satellite communications (including quantum technologies), Earth observation, space exploration, positioning, navigation and timing, and space situational awareness.
Space plays a strategic and growing role in the national economy. According to the most recent numbers, published in the latest Space Sector Report, Canada’s space ecosystem generated $5.1 billion in revenues, contributed $3.4 billion to GDP, and supported nearly 14,000 high-quality jobs, in 2023.
Noah Note: I am absolutely drained now so I'll make this quick. This is a far bigger increase than I expected, although I did hear that this was in the pipeline. This move is going to be controversial. I know quite a few people that are obviously going to be upset and debating about whether this money could have been spent on the CSA.
I will take note that there is plans for more funding to the CSA in the pipeline, to which we should actually be hearing about that very soon. They aren't being left in the dust. This is on top of domestic launch funding that was outlined in Budget 2025.
Deepening collaboration with the ESA is the best thing that Canada can do in the immediate for its Space Industrial Base. The fact is that the ESA provides a much larger customer than we can provide domestically. The Canadian space industry cannot survive as being a sole-partner of the Canadian government. It needs export success.
You can't have Medium-launch Capabilities without having a proper exports strategy. There just isn't enough demand in Canada for that kind of capability to be financially justifiable. However, there is much demand in Europe, and partnering with European industry and ESA opens up a wider door for potential Canadian suppliers.
That does mean that you have to pay in. This increase of funding will also give Canada a larger stake in the ESA. THat means more access to ESA infrastructure, more access to ESA programs, and a larger voice on what the ESA does. That is important. There is a lot to gain from being more involved in such a large, Continent-Wide effort.
Launch capacity everywhere is constrained. There's going to be even more demand in the coming years. If we want to be a launch provider, we need to work with Partners like Japan, Korea, and especially Europe.
So I do welcome this. This is a positive step and I'm very excited to see where this leads to in the future. I'm also excited to see what plans the Government has for increased funding to the CSA. I still hold out hope for CASTOR!