Canada invests in European Space Agency
November 20, 2025
By Chris Forrester
The Canadian Space Agency is deepening its links with the European Space Agency (ESA) and is investing an extra C$528.5 million (€326.3m) into ESA programmes. This amount 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,” said the Canadian Space Agency.
“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,” added the Agency’s statement. “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 organisations 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.
“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,” commented 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,” added 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,” added Lisa Campbell, President of the Canadian Space Agency.
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.
The actual amount – over and above the C$528 million – that will come from Canada and the other European participants in ESA will be determined at the ESA’s Ministerial Council, taking place on November 26–27 in Bremen, Germany.
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.
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