ARTICLE
28 April 2025

Beyond The Horizon: Navigating Canada's New Legal Landscape For Drones

MT
Miller Thomson LLP

Contributor

Miller Thomson LLP (“Miller Thomson”) is a national business law firm with approximately 500 lawyers across 5 provinces in Canada. The firm offers a full range of services in litigation and disputes, and provides business law expertise in mergers and acquisitions, corporate finance and securities, financial services, tax, restructuring and insolvency, trade, real estate, labour and employment as well as a host of other specialty areas. Clients rely on Miller Thomson lawyers to provide practical advice and exceptional value. Miller Thomson offices are located in Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Waterloo Region, Toronto, Vaughan and Montréal. For more information, visit millerthomson.com. Follow us on X and LinkedIn to read our insights on the latest legal and business developments.
As drones become increasingly integrated into commercial operations — from infrastructure inspections to emergency response efforts — the legal framework governing their use is evolving to keep pace.
Canada Transport

As drones become increasingly integrated into commercial operations — from infrastructure inspections to emergency response efforts — the legal framework governing their use is evolving to keep pace.

On March 26, 2025, the federal government published key amendments (the "Amendments") to the Canadian Aviation Regulations that directly address Beyond Visual Line-of-Sight ("BVLOS") operations.

These changes mark a significant step toward enabling more complex and autonomous drone missions in Canadian airspace. While some provisions came into force on April 1, 2025, the bulk of the new rules will apply starting November 4, 2025.

From hobby to industry: The growth of drone operations in Canada

The drone industry is experiencing rapid growth in Canada, with the global market expected to rise from USD $22.5 billion in 2020 to USD $54.6 billion in 2030. In Canada, drone use has expanded well beyond recreational flying, playing a growing role in sectors such as infrastructure inspection, agriculture, filmmaking, environmental monitoring, and even emergency responses – including deliveries to remote communities.

In 2019, the federal government introduced Part IX of the Canadian Aviation Regulations ("CARs") to govern small drones operating within visual line-of-sight ("VLOS"), and weighing up to 25 kg. However, as technology evolved and commercial use cases expanded — it became evident that the existing regulatory framework needed to adapt.

The recent Amendments respond to this need. They are designed to support:

  • Greater regulatory predictability to foster innovation, and economic growth;
  • Enhanced safety oversight and risk mitigation; and
  • A modernized fee structure aligned with current industry demands.

New category of Remotely Piloted Aircraft (RPAS)

Under the existing framework, operators of BVLOS and flying medium-sized RPAS over 25 kg must first obtain a Special Flight Operations Certificate ("SFOC") for such operations. This certificate is granted on a case-by-case basis, which is often time-consuming and administratively burdensome for all parties involved. As drone technology advances, there has been a substantial increase in SFOC requests for more complex operations. Industry stakeholder reviews have cited the lack of clear regulations for BVLOS and medium-sized RPAS as a barrier to economic growth and innovation in Canada's drone sector.

The Amendments create a new category for medium-sized RPAS, which includes drones weighing between 25 kg and 150 kg. Qualified operators will be permitted to fly medium-sized RPAS within VLOS and conduct routine BVLOS operations over sparsely populated areas, at low altitudes, and in uncontrolled airspace, all without obtaining a SFOC. For such operations, the Amendments replace SFOCs with new and more structured pilot and operator certifications tailored to the complexity and risk level of the intended operations.

Safety risk mitigation

To reflect the increased risks of larger and more complex RPAS operations, the Amendments introduce new safety requirements with respect to:

  • The pilot (e.g., training and certification);
  • The product (e.g., aircraft and supporting systems); and
  • Procedures (e.g., operational rules).

Expanding privileges of Advanced Pilot Certificate

The Amendments also expand the privileges of Advanced Pilot Certificate holders. Under the new regime, certificate holders are authorized to conduct sheltered operations—flights near structures while maintaining specific altitude and distance restrictions—as well as Extended Visual Line-of-Sight ("EVLOS") operations. EVLOS, which is not explicitly recognized in the existing rules, will serve as a new intermediary category between VLOS and BVLOS, and allow drones to fly beyond the pilot's direct sight but within a 2-nautical-mile (3.6 km) range with the assistance of a trained visual observer. Additionally, pilots with advanced certification will be authorized to operate medium-sized RPAS within visual line-of-sight under specified conditions.

New certification for lower-risk BVLOS

The Amendments introduce a new pilot certification process for lower-risk BVLOS operations, referred to as Level 1 Complex Operations. To qualify for this certification, pilots must be at least 18 years old, pass the online advanced operations exam under Part IX of the CARs, complete at least 20 hours of ground school, and successfully pass a flight review. The certification for Level 1 Complex Operations will not expire but pilots will be required to do at least one training renewal activity recognized by Transport Canada every two years. Candidates can start taking the exam and apply for a RPOC (described below) as of April 1, 2025.

Pre-Validation Declaration Process

The Pre-Validation Declaration Process expands on existing declaration procedures for RPAS manufacturers. Under this new process, operators must submit a plan demonstrating how their aircraft design will meet the requirements set out by Transport Canada. Drones will not be permitted to fly unless the manufacturer has obtained a declaration or a Pre-Validation Declaration.

Operational requirements and RPAS Operator Certificate (RPOC)

The Amendments also provide clarity on the requirements for lower-risk BVLOS operations. For instance, such operations are restricted to uncontrolled airspace, must remain below 122 meters (400 feet), and must maintain at least a 1 km distance from populated areas. Additionally, pilots of lower-risk BVLOS operations will need to determine, in advance, the population density of their area of operation according to a prescribed set of resources.

Under the new regime, organizations and businesses conducting BVLOS operations are also required to obtain a RPAS Operator Certificate ("RPOC"), which demonstrates that they have the necessary policies and procedures in place based on the size and complexity of their operations. The application process for the RPOC became accessible through Transport Canada's Drone Management Portal on April 1, 2025, while most of the other Amendments discussed in this article will come into effect on November 4, 2025.

Canadian ownership requirements

The Amendments also clarify that in order to offer commercial air services in Canada using an RPAS, the operator must be one of the following:

  • either a Canadian citizen or permanent resident;
  • a government in Canada; or
  • a corporation or entity incorporated or formed in Canada and controlled by Canadians, with at least 75% of the voting interests owned and controlled by Canadians.

If the RPAS is carrying cargo, the operator still needs to apply for an economic licence from the Canadian Transportation Agency. A non-Canadian operator that obtains a SFOC can perform speciality air services, if the operator comes from a country with whom Canada has a free trade agreement or if an exemption is obtained.

Fee modernization

To support the expanded RPAS framework, the Amendments introduce a new service and fee structure. This includes introducing fees for services for issuing SFOCs, as well as for new services such as examination and certification functions that support both VLOS and BVLOS operations.

Next steps

Ultimately, the Amendments will streamline the integration of RPAS into Canadian airspace and provide a more robust regulatory framework for all RPAS stakeholders. Businesses and individuals that operate drones should review these changes and determine if and how their operations may be impacted to ensure continued compliance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More