Canada Gazette, Part I, Volume 160, Number 12: Regulations Amending the Arctic Shipping Safety and Pollution Prevention Regulations and the Administrative Monetary Penalties and Notices (CSA 2001) Regulations
March 21, 2026
Statutory authorities
Arctic Waters Pollution Prevention Act
Canada Shipping Act, 2001
Sponsoring department
Department of Transport
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
Canada has had a domestic regulatory regime for Arctic shipping for over fifty years. However, mandatory international measures to address the risks of ships operating in polar regions were only introduced on January 1, 2017, when the International Code for Ships Operating in Polar Waters (Polar Code) entered into force through the addition of Chapter XIV to the International Convention for the Safety of Life at Sea (SOLAS). Before this, the absence of mandatory international standards for polar navigation — including in the Canadian Arctic — contributed to heightened safety and environmental risks and resulted in a patchwork of individual Arctic State rules and an inconsistent regulatory framework for ships transiting across high latitudes.
Accident and incident data submitted by Arctic states and other stakeholders with equities in the region to the International Maritime Organization (IMO) demonstrates that non-SOLAS vessels, especially fishing vessels and yachts, are operating with increasing frequency in polar waters and are vulnerable to the same risks as ships certified under SOLAS. These risks include reduced search and rescue capabilities, limited navigational charting, changing and challenging ice conditions and equipment and instructions not functioning properly at high latitudes.
At the 107th session of the Maritime Safety Committee, the IMO adopted amendments to the SOLAS Convention and the Polar Code that introduced new navigation safety and voyage planning requirements for non-SOLAS vessels operating in polar regions.footnote 1 As a member state of the IMO, and a signatory to the SOLAS Convention, Canada is required to align its domestic regulations with international updates to the Polar Code through amendments to the Arctic Shipping Safety and Pollution Prevention Regulations (ASSPPR) (the proposed Regulations).
The new navigation safety and voyage planning requirements are based on years of discussions at the IMO’s Maritime Safety Committee and its Sub-Committee on Navigation, Communication and Search and Rescue. All eight Arctic States, including Canada, were active and supportive at the IMO in the development of these additional safety measures under the Polar Code.
Background
Canada has long been at the forefront of protecting the Arctic environment. In 1970, Canada enacted the Arctic Waters Pollution Prevention Act (AWPPA), a strict pollution prevention regime that protects the Arctic marine environment north of the 60th parallel of north latitude and out to the outer limit of Canada’s exclusive economic zone. The AWPPA and its regulations establish
- specific construction and equipment carriage standards for vessels engaged in Arctic shipping;
- a system of shipping safety control zones;
- a ban on discharges of oil, hazardous chemicals, and garbage; and
- set out liability limits associated with the deposit of waste into Arctic waters.
In continued recognition of the unique safety risks inherent to the region and the sensitivity of the marine environment to ship traffic, on July 1, 2010, Canada made ship reporting mandatory through the Northern Canada Vessel Traffic Services Zone Regulations (NORDREG) for vessels operating in Canadian northern waters. NORDREG plays a vital role in the identification and monitoring of vessels by the Canadian Coast Guard’s Marine Communications and Traffic Services Centre in Iqaluit and helps ensure that information is available to mariners to support navigational decision-making on board vessels, and to reduce the risks of incidents where damage to the vessel might result in harm to the environment. NORDREG facilitates timely pollution prevention response and allows for the efficient provision of safety services, including icebreaking, search and rescue, and ice routing assistance.
The IMO, an agency under the United Nations to which Canada is a member state, establishes international standards and practices for ship safety and environmental protection, that is, it works to promote safe shipping through international cooperation. Canada played an instrumental role in the development of the Polar Code at the IMO, leveraging over 40 years of experience as a world leader in the oversight of Arctic shipping. As a result of this active engagement, the content of the Polar Code — from the hazards addressed, to how a ship is to operate in ice, to the restrictions placed on certain discharges — is influenced significantly by the safety and environmental standards contained within the Canadian regime for Arctic shipping safety and pollution prevention.
The primary objective of the Polar Code is to address the unique hazards confronted by certain vessels operating in the Arctic and Antarctic through the introduction of a variety of safety and pollution prevention measures, including those related to design and equipment, vessel operations, crew training, communications and on-board procedures, and protection of the marine environment. The safety components of the Polar Code are only mandatory for ships certified under the SOLAS Convention. However, the IMO has nevertheless urged its member states to implement the safety measures of the Polar Code, as far as practicable, for non-SOLAS ships (including fishing vessels of 24 metres in length and above and pleasure yachts of 300 gross tonnage and above not engaged in trade).footnote 2
In December 2017, Canada adopted new safety and pollution prevention regulations under the AWPPA and the Canada Shipping Act, 2001 (CSA 2001) for certain vessels operating in the Canadian Arctic, and Canadian-flagged vessels operating in polar regions — the Arctic Shipping Safety and Pollution Prevention Regulations (ASSPPR).
Objective
The objectives of the proposed Regulations are to improve the safety of navigation and voyage planning of a broader range of vessels operating in Canada’s Arctic waters beyond SOLAS certified vessels, which will in turn help prevent pollution from marine shipping activities. These objectives are in line with the Polar Code’s assertion that any safety measure taken to reduce the probability of an accident will largely benefit the environment. The proposed Regulations would also fulfill Canada’s international commitments and obligations under SOLAS and the Polar Code and demonstrate Canada’s international leadership in supporting safe shipping in polar waters.
Description
Canada is introducing proposed regulatory amendments to the ASSPPR to meet its international commitment as a member state to the IMO. Amendments to SOLAS came into effect internationally on January 1, 2026, for ships constructed on or after that date and will come into effect on January 1, 2027, for ships constructed before January 1, 2026. As a contracting party to the SOLAS Convention, Canada is bound by these technical amendments when they enter into force and consequently updates to the ASSPPR are needed for effective implementation.
This proposal also includes some minor amendments to the Administrative Monetary Penalties and Notices (CSA 2001) Regulations that ensure corresponding alignment with the new vessel categories being introduced into the ASSPPR.
Scope
The proposed Regulations would require that fishing vessels of 24 metres or more, pleasure craft of 300 gross tonnage or more not engaged in trade, and cargo vessels between 300 and 500 gross tonnage conform to the applicable requirements of SOLAS Chapter XIV.
Navigation safety requirements
Under the proposed Regulations, these new vessel types would be subject to the following additional navigation safety requirements established under Chapter 9-1 of the Polar Code:
- having a way to receive and display current information on ice conditions in the area;
- complying with SOLAS regulation V/22.1.9.4, which requires a clear view through at least two of the navigation bridge windows regardless of weather conditions, as well as having a clear view astern or another arrangement accepted by the country where the vessel is registered;
- having a way to keep ice from building-up on navigation and communication antennas in areas where ice build-up is likely;
- being equipped with two means of illumination to help the crew see ice;
- being fitted with at least one Global Navigation Satellite System (GNSS) compass or equivalent that is connected to the ship’s main and emergency power;
- having two independent echo-sounding devices or one echo-sounding device with two separate independent transducers if ice strengthened; and
- having two non-magnetic means to determine and display their heading.
Voyage planning requirements
The proposed Regulations would also introduce new voyage preparation requirements for these vessels as established under Chapter 11-1 of the Polar Code, which would specify that route planning through polar waters needs to take into account the following:
- the procedures required by the safety management system on board the vessel, and if no safety management system is implemented, there shall be a documented procedure for operation in polar waters;
- any limitations of the hydrographic information and aids to navigation available; current information on the extent and type of ice and icebergs in the vicinity of the intended route;
- statistical information on ice and temperatures from former years; places of refuge;
- current information and measures to be taken when marine mammals are encountered relating to known areas with densities of marine mammals, including seasonal migration areas;
- current information on relevant ships’ routing systems, speed recommendations and vessel traffic services relating to known areas with densities of marine mammals, including seasonal migration areas; and
- national and international designated protected areas along the route; and operation in areas remote from search and rescue capabilities.
Administrative monetary penalties
The Administrative Monetary Penalties and Notices (CSA 2001) Regulations would also be amended to reflect the reorganization of applicable categories of vessels from a single provision [subsection 6(1)] to two provisions [subsections 6(1) and 6(1.1)]. Because of this division, the Administrative Monetary Penalties and Notices (CSA 2001) Regulations needed to be amended accordingly.
Regulatory development
Consultation
The proposed Regulations reflect several years of international consultations and discussions at the IMO, in addition to subsequent engagement with domestic stakeholders. Stakeholders most affected by the proposed Regulations are primarily the owners of large fishing vessels that seasonally operate within the Baffin Bay/Davis Strait area of the Canadian Arctic.
In order to first galvanize international support for the addition of safety measures onboard non-SOLAS ships operating in polar regions, several stakeholder groups submitted information papers to the IMO that sought to provide evidence that additional risk mitigations were needed to address the safety risks faced by all ships operating at high latitudes. These papers highlighted the environmental vulnerabilities unique to polar waters, the added benefits of careful voyage planning that contribute to minimizing marine ecosystem disturbances, and the benefits of thorough polar-specific operational planning. The contents of these papers helped inform the drafting of the amendments to the Polar Code (e.g. chapters 9-1 and 11-1) that specifically targeted non-SOLAS ships, and were primarily submitted by environmental non-governmental organizations, including the World Wildlife Fund, Friends of the Earth International, and Pacific Environment, as well as by IMO Arctic member states, including Norway, Canada, and the United States.
Following the adoption and approval of international amendments to SOLAS and the Polar Code, Transport Canada initiated domestic engagement with stakeholders to seek initial feedback on the policy rationale for implementing these internationally agreed changes within Canada. This engagement was primarily facilitated through Transport Canada’s Canadian Marine Advisory Council (CMAC) Secretariat. More specifically, dedicated consultation sessions were held with industry and other stakeholders in-person in Ottawa on November 14 and 15, 2023, at the National CMAC meeting, as well as through regional CMAC meetings hosted throughout fall 2023 in the Prairie and Northern Region, Quebec Region, and Atlantic Region. Industry stakeholders engaged during these sessions included shipping companies, cruise ship operators, shipping associations, classification societies, and fishing vessel owners and operators.
Additional outreach also occurred via the online Let’s Talk Transportation consultative forum, where Transport Canada’s National Marine Safety and Security Program created an online portal to receive feedback from stakeholders and the Canadian public. The consultation was posted online on September 8, 2023, and was shared through Transport Canada’s consultation networks to solicit feedback on the proposed requirements. There were more than 140 visits to the page and Transport Canada received five formal written submissions from domestic Arctic stakeholders. The comments received were largely outside the scope of the proposal and focused more on the need for separate navigation and vessel safety measures, additional training for crews, and strengthened protections for marine mammals from vessel collisions. Some of the concerns raised, such as the need to ensure proper inspection of vessels prior to any Arctic voyage, are already addressed under Transport Canada’s inspection programs. A comment concerning “opportunities to engage northern communities to identify the gaps in northern response capacity and identify training and equipment needs to enhance Arctic response” continues to be addressed through the Prairie and Northern Regional CMAC, which are co-led by the Canadian Coast Guard, who have auxiliary units in northern communities to help with search and rescue and pollution response. Another stakeholder raised concerns that the proposal would allow more commercial fishing vessels into the Arctic. This comment was identified as being out of scope, as the proposed Regulations deal with the carriage of safety equipment and voyage planning and have no direct relationship to commercial fishing quotas.
Following the closure of the online Let’s Talk Transportation forum, a follow-up report was drafted entitled “What We Heard Report: Polar Code - Adding new vessel types to the Arctic Shipping Safety and Pollution Prevention Regulations.” This report was then shared with those that provided direct feedback in order to further highlight how the proposal would contribute to improved marine safety, reduced environmental impacts, and better planned Arctic voyages.
Continued communication with external stakeholders, including Indigenous groups, has and will continue to be done through both in-person CMAC meetings and electronic notices. Consideration is also being given to the issuance of Ship Safety Bulletins upon entry into force of the proposed Regulations. Ship Safety Bulletins are notices that specifically target maritime stakeholders and serve as a source of accurate and up-to-date ship safety information, paramount to the safety of life at sea and one of the important mechanisms for conveying timely information pertaining to safeguards against identified risks and/or direction to industry. Communication with internal stakeholders as the proposed Regulations near implementation will be distributed to marine safety inspectors via the FlagStateNet. Flag State Messages are sent via a secure, web-based system, and help support the monitoring, compliance and enforcement of Canadian flagged vessels.
As most of the requirements captured within the proposed Regulations are already being met voluntarily by vessel owners and operators sailing in polar waters, no significant concerns are anticipated respecting compliance and enforcement. Ongoing discussions respecting implementation and interpretation of these and other regulations will continue to occur during the annual National and Region CMAC meetings.
Indigenous engagement, consultation and modern treaty obligations
In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, analysis was undertaken by Transport Canada’s Indigenous Relations group in order to determine whether the proposal is likely to give rise to modern treaty obligations. This assessment examined the geographic scope and subject matter of the proposal in relation to modern treaties in effect.
The Assessment of Modern Treaty Implications (AMTI) determined that the proposal is national in scope and may apply to modern treaties in Canada, particularly in areas with large water bodies, including Inuit Nunangat. The proposed Regulations would directly affect treaty members who own or operate vessels, including fishing vessels. The proposed Regulations would also benefit treaty members by enhancing the safety of mariners and protecting the environment.
The proposed Regulations apply to certain vessels in Canadian Arctic waters, including those vessels owned/operated by treaty members. The AMTI analysis identified clauses with respect to considering treaty groups’ advice in making decisions which affect marine areas. The analysis also noted that, outside of specific treaty obligations, the proposed Regulations may be of interest to treaty governments, as the proposal touches on marine transportation and navigation over water resources where treaty rights and interests are present. Therefore, treaty partners will be kept engaged to ensure that any treaty obligations are fulfilled. This engagement is in part accomplished through the invitation and participation of Indigenous groups to the annual regional and national CMAC meetings; the last of which occurred in May 2025. Northern Indigenous participants engaged to date include Nunavut Tunngavik Incorporated, the Nunatsiavut Government, the Inuvialuit Regional Corporation, the Secretariat of the Inuvialuit Settlement Region, the Kativik Regional Government, the Manitoba Metis Federation, Inuit Tapiriit Kanatami, the Nunavut Marine Council, and various other Indigenous hunters and trappers’ associations, including the Ekaluktutiak Hunters and Trappers Organization, the Tuktoyaktuk Hunters and Trappers Committee, and the Inuvialuit Game Council.
Section 5 of the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDA) requires the Government of Canada to take, in consultation and cooperation with Indigenous peoples, all measures necessary to ensure that existing and new laws of Canada, including regulations, are consistent with the United National Declaration on the Rights of Indigenous Peoples. A UNDA Assessment concluded that the duty to consult Indigenous peoplesfootnote 3 was not triggered. The proposed Regulations were included in Transport Canada’s Indigenous Relations Engagement Opportunities Bulletin in February 2026 to ensure transparent engagement and to help increase awareness of the proposed changes.
Transport Canada’s regional Indigenous Relations teams will continue to be engaged for advice on outreach and identifying all relevant modern treaty signatories and Indigenous groups to promote compliance with treaty and other legal obligations.
Instrument choice
To ensure compliance with international obligations, amendments to IMO Conventions must be incorporated into domestic regulations by member states. Non-regulatory and status quo options were deemed inappropriate, as only the proposed Regulations enable Canada to fulfill its responsibilities, both as a contracting party to SOLAS, and as a key contributor to the development of the Polar Code.
Regulatory analysis
The proposed Regulations would fulfill the Government of Canada’s international obligations by adopting the addition of two new chapters to the Polar Code (9-1 and 11-1), which would broaden the scope of vessels to which the Polar Code applies. These requirements currently exist for larger vessels operating in the Arctic and Antarctic, and the proposed Regulations would apply these requirements to categories of smaller vessels (cargo ships between 300 and 500 gross tonnage, fishing vessels 24 metres or longer, and pleasure yachts of 300 gross tonnage or more not engaged in trade).
Chapters 9-1 and 11-1 of the Polar Code relate to navigation and voyage planning. For navigation, vessels would be required to have equipment to receive weather and ice information, equipment for detecting ice, and equipment such as lights to facilitate navigation. For voyage planning, the vessel operator would have to officially take into consideration factors such as weather and marine mammals before the vessel enters Canadian Arctic waters.
With high levels of voluntary compliance and a low number of vessels affected, it is expected that the proposed Regulations would have an estimated cost of $192,699 (present value in 2024 Canadian dollars, discounted to the base year of 2026 at a 7% discount rate) between 2026 and 2035. There is no change in the administrative burden as part of the proposed Regulations.
Analytical framework
The cost-benefit analysis for the proposed Regulations is conducted in accordance with the Treasury Board of Canada Secretariat’s (TBS) Policy on Cost-Benefit Analysis. Costs and benefits that are in scope are those that are attributed to Canadians. Where possible, impacts are quantified and monetized, with only the direct costs and benefits for stakeholders being considered in the cost-benefit analysis.
Benefits and costs associated with the proposed Regulations are assessed based on comparing the baseline scenario against the regulatory scenario. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not implement the proposed Regulations. The regulatory scenario provides information on the expected outcomes of the proposed Regulations. Details of the scenarios are further described below.
The time frame used in the analysis is 10 years from 2026 to 2035, with the year 2026 being when the proposed Regulations are expected to be registered. For the purposes of the analysis, the proposed Regulations are assumed to come into force on January 1, 2027, for vessels constructed before January 1, 2026, to align with the SOLAS amendments. Unless otherwise noted, benefits and costs are expressed in present value using 2024 Canadian dollars, discounted to the base year of 2026 using a 7% discount rate, for the 10-year analytical period. Annualization and net present value are calculated using a discounting approach where the first period is not discounted. Discrepancies may occur between values due to rounding.
Stakeholder profile
The proposed Regulations would affect fishing vessels of 24 metres in length overall and above, pleasure yachts of 300 gross tonnage and above not engaged in trade, and cargo ships of 300 gross tonnage and above but below 500 gross tonnage that are operating in Canada’s Arctic waters. The proposed Regulations would apply to Canadian and foreign vessels. However, impacts on foreign vessels are not included in the analysis in accordance with TBS’s Cost-Benefit Analysis Guide for regulatory proposals.footnote 4
Information on vessels operating within Arctic waters was obtained for 2019 through 2023 using Automatic Identification System (AIS) data. In those 5 years, there were 60 unique vessels operating which were within the size parameters of the proposed Regulations: 49 were fishing vessels 24 metres or longer, and 11 were pleasure yachts of 300 gross tonnage or more. There were no cargo vessels operating which were between 300 gross tonnage and 500 gross tonnage. Of the 49 fishing vessels, 23 were Canadian-flagged vessels and 13 of them were 500 gross tonnage and above. The 11 pleasure yachts were foreign-flagged and are outside the scope of the analysis.
To ensure that the number of vessels operating in the Canadian Arctic is not underestimated, the analysis includes all 23 Canadian-flagged vessels operating at any point between 2019 and 2023. Given the relatively stable number of vessels operating over this period, it is assumed that the size of the fleet would remain the same during the analytical period.
The 23 in-scope Canadian-flagged fishing vessels operating in the Canadian Arctic are owned by 14 businesses. Only a few of these vessel owners are considered “small businesses” in accordance with the TBS’s Policy on Limiting Regulatory Burden on Business.footnote 5
Based on AIS data and the TC Vessel Registry, vessel construction rates in the Arctic fishing industry have remained stable over the five years of data analyzed.footnote 6 It is assumed that construction rates would remain steady over the 10-year analytical period. To avoid underestimation, four vessels are projected to be built in the next 10 years. This reflects the maximum observed number of vessels which were less than 10 years old in any observed year. The four new vessels are evenly distributed throughout the analytical period, with one new vessel expected every 2.5 years. Based on the observed ratio of new construction by tonnage from the AIS/TC Vessel Registry data, it is estimated that three vessels will be 500 gross tonnage or larger. The fourth vessel, which is expected to be under 500 gross tonnage, is projected to be owned by a small business. The order in which these vessels are constructed was selected randomly.
Baseline scenario
Under the baseline scenario, the ASSPPR would not be amended to align Canada with the IMO amendments to SOLAS Chapter XIV and to chapters 9-1 and 11-1 of the Polar Code, adopted at the 107th session of the IMO Maritime Safety Committee, in 2023. Therefore, in the baseline, Canada would fail to meet its international commitments by not aligning domestic regulations with international agreements.
In this scenario, non-SOLAS vessels would be operating in the Canadian Arctic without being subject to Polar Code requirements. While not required to do so, many of these vessels would remain either partially or fully voluntarily compliant with these proposed requirements. This is because many of the requirements in the proposed Regulations would align with standard equipment or operating practices currently in place for vessels navigating in the Canadian Arctic.
Regulatory scenario
Navigation
Under the regulatory scenario, the proposed Regulations would contain requirements for vessels to receive up-to-date information, including on ice conditions, and for vessels to have the ability to visually detect and illuminate ice. These proposed equipment requirements are generally covered by other regulations and are currently standard on fishing vessels. For example, the Navigation Safety Regulations, 2020 require vessels in-scope of the proposed regulations to have search lights.
Vessels proceeding to latitudes over 80 degrees would be required to have a GNSS compass. AIS data indicates that no fishing vessels, cargo ships, or pleasure yachts to which the proposed Regulations would apply currently operate that far north. They are also not expected to operate north of 80 degrees over the analytical period, as there is no business case for these vessels to operate at that latitude.footnote 7
The proposed Regulations would require new and existing fishing vessels of 24 m or more in length and 500 gross tonnage and above, as well as pleasure crafts of 500 gross tonnage and above, to have two non-magnetic means to determine their heading. Since the Navigation Safety Regulations, 2020 currently require vessels of 500 gross tonnage or above, when engaged on a voyage other than a sheltered waters voyage, to have a gyrocompass, a type of non-magnetic compass, these vessels already have one of the two required non-magnetic means. Under the regulatory scenario, fishing vessels and pleasure crafts of 500 gross tonnage or above would be required to install one additional non-magnetic mean when operating in Polar waters. Vessels constructed after the coming into force date would have to comply with the proposed Regulations on the day of their vessel registration. Newly constructed vessels would be required to have a clear view astern, equipment to prevent ice accumulation on antennas and navigation equipment, and enclosed bridge wings. These proposed requirements are already incorporated into current construction standards for vessels navigating in cold conditions, and new requirements would codify requirements for in-scope vessels navigating in Canadian Arctic waters and would therefore not have any incremental costs.
Ice-strengthened vessels constructed after the registration of the proposed Regulations would be required to have two echo-sounding devices with two separate independent transducers. Given that most vessels operating in the Arctic have a degree of ice-strengthening, it is reasonable to assume that all new vessels purpose built for polar operations would be ice-strengthened. Currently, these vessels are constructed with one echo-sounding device and one transducer. Under the regulatory scenario, all newly constructed vessels would be required to have a second echo-sounding device and a second independent transducer.
Voyage planning
Under the regulatory scenario, vessel operators of in-scope vessels would be required to have a voyage plan before entering Canadian Arctic waters. Vessels constructed after the registration of the proposed Regulations would be expected to comply immediately. For existing vessels, voyage planning requirements would come into force on January 1, 2027.
This voyage plan would need to be considered either through the procedures required by the safety management system onboard or the documented procedure for operating in polar waters when planning the voyage route. The voyage plan would be required to incorporate current and historic information on ice, icebergs and temperatures, and an understanding of places of refuge and protected areas along the route. Vessel operators are already compliant with these proposed requirements, as they are complementary with requirements from Navigation Safety Regulations, 2020, the Marine Safety Management System Regulations and the Guidelines for Voyage Planning [IMO resolution A.893(21)] and are considered standard practice.
However, the proposed Regulations would also require vessel operators to consider Arctic-specific criteria, including marine mammals’ seasonal migration areas, when planning their route. Currently, voyage planning elements require vessels to consider marine environmental protection measures. Due to this overlap, vessels operating in the Arctic already partially fulfill this proposed requirement in the baseline. For example, vessels operating in the Arctic consult the Notices to Mariners (NOTMAR), which includes maps with areas to avoid and zones where vessels must reduce speed to 10 knots or less to protect Bowhead and Beluga whales. The proposed Regulations would make the proposed requirements related to marine mammals more explicit. The vessel operator would need to be aware of marine mammal density and migratory areas.
Vessel operators would continue to send their voyage plans to the Marine Communications and Traffic Services Centre, which is run by the Canadian Coast Guard and acts as a link between vessels and Transport Canada. Risk-based inspections, which may include the review of voyage plans, are expected to continue at the same frequency/effort (cost) by Transport Canada marine safety inspectors.
Benefits and costs
Benefits
The proposed Regulations would align Canadian regulations with international requirements. This would fulfill Canada’s international obligations. It would also help maintain Canada’s reputation as a global leader in the effective oversight of Arctic shipping within the IMO, of which Canada is a member government. While several proposed requirements are already being met in the baseline, explicitly adding these requirements as part of the proposed Regulations would provide consistency of standards for vessels operating in the Arctic.
The Government of Canada has a long history of protecting the Canadian Arctic environment and aiding in the implementation of a safety-focused operating culture for vessels active in the region. As a result, vessels subject to the proposed Regulations already demonstrate high levels of compliance related to having the equipment and navigational procedures required to reduce accidents. By implementing these proposed requirements, Transport Canada would ensure that this safety culture, which prioritizes reducing accidents and protecting the environment, continues. Additionally, the new proposed equipment and voyage planning requirements would enhance the safety culture aimed at reducing accidents and their associated negative environmental impact.
Lastly, an increased focus on marine mammals during voyage planning would potentially lead to a small reduction in vessel-animal collisions, including those involving threatened and vulnerable species.
Costs
The proposed Regulations would impose new safety and navigation requirements on new and existing in-scope vessels navigating in the Canadian Arctic, which are expected to result in a total monetized cost of $192,699.
Navigation
In order to comply with the proposed Regulations, all existing and new in-scope vessels, which are 500 gross tonnage or above, would require two non-magnetic compasses. The Navigation Safety Regulations, 2020 already require these vessels to have one non-magnetic compass when engaged on a voyage other than a sheltered waters voyage. To comply, 13 existing fishing vessels of 500 gross tonnage and above would need to install a second non-magnetic compass by January 1, 2027. The three new vessels that are 500 gross tonnage or above expected to be navigating in the Canadian Arctic over the analytical timeframefootnote 8 would require a second non-magnetic compass. The average cost of purchase and installation is $12,500.footnote 9 The expected total cost would be $183,072.
Newly constructed vessels which are ice strengthened would require two echo-sounding devices and two independent transducers. An echo-sounding device and independent transducer are standard in the baseline scenario. It is estimated that the four new vessels projected over the 10-year analytical timeframefootnote 10 would each require the installation of a second echo-sounding device and a second independent transducer. The cost of purchase and installation is $3,000.footnote 11 The expected total cost would be $9,628.
Voyage planning
Before entering Canadian Arctic waters, vessel operators would need to consider information on migratory routes and marine mammals into their voyage plan. There are already existing requirements to consider marine mammals, including season migration areas, when operating in some areas of the Arctic, such as marine protected areas. The proposed Regulations would ensure these requirements cover the entire Arctic. This information could be obtained from a variety of sources and publications, including the World Wildlife Fund’s Arctic Mariner’s Guides, NOTMAR, or the Sailing Direction’s Handbook. It is not expected that this proposed requirement would add significant costs, as there is already overlap with current practices. However, for vessels that would be operating outside of marine protected areas, it is expected that operators would take between 5 and 10 minutes before each voyage to review the information.
Routes followed by fishing vessels operating in the Canadian Arctic are subject to a high degree of flexibility. Voyage planning includes start and end points of a voyage, along with general plans and considerations, but it is not prescriptive. For example, it does not require exact routes or coordinates. In addition, it is already in the best interest of vessel operators to make minor modifications to their route based on all available information. From safety and financial perspectives, it is already in the best interest of vessel owners and the crews to avoid conditions that could damage their vessel or reduce their fish harvesting capacity, whether that be ice, adverse weather, or marine mammals. While altering or charting a new route may have cost implications, it is already a common practice and a reality of operating in the Arctic region.
Government
The proposed Regulations would have minimal costs to Transport Canada. These costs would be related to the updating of training materials for compliance and enforcement personnel, and the communication of the regulatory change to stakeholders. These marginal costs are excluded from the analysis because they would occur before the Regulations are registered.
Cost statement
- Number of years: 10 (2026 to 2035)
- Price year: 2024
- Present-value base year: 2026
- Discount rate: 7%
| Impacted stakeholder | Description of cost | Base year - 2026 | 2027 | Final year - 2035 | Total (present value) | Annualized value |
|---|---|---|---|---|---|---|
| Industry | Purchase and installation of non-magnetic compasses | $12,500 | $151,869 | $0 | $183,072 | $24,360 |
| Purchase and installation of echo-sounding device and transducer | $3,000 | $0 | $0 | $9,628 | $1,281 | |
| All stakeholders | Total costs | $15,500 | $151,869 | $0 | $192,699 | $25,641 |
Quantified (non-monetized) and qualitative impacts
Positive impacts
- Alignment of Canadian regulations with international requirements. This would help maintain Canada’s reputation within the IMO, of which Canada is a member government.
- Consistency of standards for vessels operating in the Arctic.
- The proposed Regulations would help ensure that Canada’s high safety and navigation standards would continue, minimizing the risk of accidents and their associated environmental damage.
- The increased focus on marine mammals during voyage planning would potentially reduce the likelihood of vessel-animal collisions, including those involving threatened and vulnerable species.
Negative impacts
- Before entering Canadian Arctic waters, in-scope vessel operators would require information on migratory routes and marine mammals. The expected costs would be marginal, with this review expected to take between 5 and 10 minutes per voyage.
Small business lens
Analysis using the small business lens concluded that the proposed Regulations would impact small businesses. Based on publicly available information that companies publish, including financial disclosures and information on employment available through press material and companies’ web pages, most businesses operating were determined to be large or medium sized businesses. Three businesses operating four of the 23 Canadian-flagged fishing vessels are unlikely to have more than 100 employees or $5 million in revenue. With the objective of ensuring the safety of vessels operating in Canada’s Arctic waters and given the relative minor compliance costs to small businesses, the proposed Regulations would apply to all affected vessel operators regardless of their size.
None of the four vessels are 500 GT or above, so no small businesses would be required to install non-magnetic compasses.
One of four projected newly constructed vessels is expected to be owned by a small business.footnote 12 This vessel is likely to be ice-strengthened and would require a second echo-sounding device and a second independent transducer. The undiscounted cost of purchase and installation of this equipment is $3,000. The total present value cost would be $2,139 and the annualized value would be $285.
Vessel operators for small businesses would have the same proposed requirements to consider and plan their voyages based on migratory routes and marine mammals. The expected costs would be marginal, with this review expected to take less than 10 minutes before each voyage.
One-for-one rule
The one-for-one rule does not apply, as there would not be any incremental change in administrative burden on business and no regulatory titles would be repealed or introduced.
Regulatory cooperation and alignment
The proposed Regulations would allow Canada to meet its international obligations, as both a member state to the IMO and as a key player in the development of the Polar Code, by bringing these international amendments into force domestically within the required time period, via minor changes to the ASSPPR, enabled under the CSA 2001, and the AWPPA. All eight Arctic States were supportive at the IMO in the development of these additional safety measures under the Polar Code. It is expected that these measures would be adopted by each Arctic State through their domestic regulations.
International obligations
The proposed Regulations would enable Canada to meet its international obligations as a contracting party to SOLAS, as a member state of the IMO, and as a key player in the development of the Polar Code. No linkages to obligations under the World Trade Organization are anticipated.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, the strategic environmental and economic assessment (SEEA) process was followed and a Climate, Nature, and Economy Lens was completed. No important environmental or economic effects are anticipated as a result of this proposal.
Gender-based analysis plus
The proposed Regulations would primarily apply to fishing vessels (24 metres in length overall and above) in Canadian Arctic waters. This could have an impact on northern Inuit peoples, as the majority of the population of Canadian Arctic coastal communities identify as Inuit. Most Canadian Arctic coastal communities are remote, only accessible by air or water, and heavily reliant on fishing. Of the 23 Canadian-flagged fishing vessels which these proposed Regulations are anticipated to apply to, six are owned by Indigenous cooperatives or Indigenous companies, which are harvesting their communities’ commercial quota. While there are potentially some costs associated with the additional equipment requirements, the increased safety could improve the lives of mariners in Canadian Arctic waters.
According to the International Transport Workers Federation (ITF), the maritime industry continues to be male dominated, as women only make up an estimated 2% of the international maritime workforce.
Inuit peoples have close cultural and spiritual ties to the marine environment and wildlife. A marine safety incident could have environmental repercussions and the potential to devastate Arctic communities by contaminating their food source, impacting their culture, and disrupting traditional uses. As such, a positive benefit of the proposed increased marine safety measures could mean that the Arctic environment would be better protected. This would benefit all Canadians but would have the greatest positive direct and indirect effect on northern Inuit peoples in their health and quality of life.
Inuit peoples living in coastal Canadian Arctic communities will benefit the most from the proposed Regulations, which are expected to protect mariners and the Arctic environment in which they live and harvest their food. The proposed regulations are not anticipated to result in any barriers to access, as most vessels already voluntarily engage in Arctic-specific voyage planning and carry additional navigation safety equipment to help mitigate risks associated with Arctic maritime hazards (e.g. ice, inclement weather, extended periods of darkness, and poor charting).
Implementation, compliance and enforcement, and service standards
Implementation
The proposed Regulations will come into force on the day on which they are registered.
Stakeholders will receive information on the new requirements through platforms such as Safety Net, FlagStateNet, and Safety Ship Bulletins, as well as incorporated into existing training sessions by trainers semiannually as required.
The implementation of the proposed Regulations would be supported through Transport Canada’s Marine Safety Management System (MSMS). The MSMS provides detailed information on the steps required to complete a procedure or a portion of a procedure, such as filling in a form, entering information into a database, or operating a particular piece of equipment. Work instructions such as administrative procedures for flag state inspectors and examiners can be found in the Marine Inspector Bookshelf (an electronic repository of reference material), and are communicated through internal notification processes, including FlagStateNet and Examnet. Transport Canada will continue to use national and regional CMAC meetings to communicate the implementation of the proposed Regulations and issue information to affected stakeholders through Ship Safety Bulletins to inform designers, builders, and owners of vessels of the proposed Regulations.
Compliance and enforcement
Compliance with the proposed Regulations will be monitored and enforced by Transport Canada marine safety inspectors and surveyors of Canadian Recognized Organizations, which are classification societies authorized to act on behalf of Transport Canada under the CSA 2001.
Vessels will continue to send their voyage plans to the Marine Communications and Traffic Services Centre, which is operated by the Canadian Coast Guard and acts as a link between vessels and Transport Canada. Any concerns or enforcement action (e.g. due to non-compliance) are addressed by Transport Canada’s regional offices.
The enforcement of the proposed Regulations will be made in accordance with the Transport Canada Policy on Compliance and Enforcement of the CSA 2001, for the safety of shipping and the protection of the marine environment.
In accordance with its Departmental Enforcement Policy, Transport Canada marine safety inspectors will take a graduated and proportionate approach to enforcement to educate, deter, and when necessary, penalize those who are non-compliant. The enforcement objective is to permit industry to take corrective actions first, especially for minor infractions, rather than immediately issuing administrative monetary penalties (AMP) and/or proceeding by way of summary convictions. For minor contraventions, verbal counselling or written warnings may be used and may be accompanied by an assurance of compliance — a commitment from the regulated party to correct the issue and comply with the requirements — rather than proceeding with issuing a notice of violation. For serious infractions, the CSA 2001 allows for penalties of up to $1,000,000 in fines, imprisonment for up to 18 months, or both, upon summary conviction for non-compliance with regulations made under Part 4 of the Act, which would include the proposed Regulations. Non-compliances with the proposed Regulations are also punishable under the AWPPA.
If a regulated entity believes that an AMP was issued incorrectly, they may apply to the Transportation Appeal Tribunal of Canada to request a review.
Transport Canada will continue to monitor and participate, both nationally and internationally, in ongoing regulatory activities related to Arctic shipping safety and pollution prevention and will take appropriate action with non-compliant stakeholders as required.
Contact
Drummond Fraser
Manager
Legislative, Regulatory & International Affairs
Marine Safety and Security
Transport Canada
Email: TC.MSSQuestions-QuestionsSSM.TC@tc.gc.ca
PROPOSED REGULATORY TEXT
Notice is given that the Governor in Council proposes to make the annexed Regulations Amending the Arctic Shipping Safety and Pollution Prevention Regulations and the Administrative Monetary Penalties and Notices (CSA 2001) Regulations under subsection 12(1) of the Arctic Waters Pollution Prevention Actfootnote a and subsections 7(2), 35(1)footnote b, 120(1)footnote c and 190(1)footnote d and paragraphs 244(f)footnote e, (g) and (h)footnote f of the Canada Shipping Act, 2001footnote g.
Interested persons may make representations concerning the proposed Regulations within 60 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Drummond Fraser, Manager, Marine Safety and Security, Department of Transport, Place de Ville, Tower C, 330 Sparks Street, 11th floor, Ottawa, Ontario K1A 0N5 (email: drummond.fraser@tc.gc.ca).
Ottawa, March 13, 2026
Janna Rinaldi
Acting Assistant Clerk of the Privy Council
Regulations Amending the Arctic Shipping Safety and Pollution Prevention Regulations and the Administrative Monetary Penalties and Notices (CSA 2001) Regulations
Arctic Waters Pollution Prevention Act and Canada Shipping Act, 2001
Arctic Shipping Safety and Pollution Prevention Regulations
1 Section 2 of the Arctic Shipping Safety and Pollution Prevention Regulationsfootnote 13 is amended by adding the following after subsection (4):
Pleasure yacht
(5) For the purpose of interpreting a document incorporated by reference into these Regulations, “pleasure yacht” is to be read as “pleasure craft”.
2 Section 6 of the Regulations is replaced by the following:
Chapter XIV of SOLAS
6 (1) Subject to subsection (2), the following Canadian vessels in polar waters and foreign vessels in a shipping safety control zone must conform to the requirements of Chapter XIV of SOLAS applicable to that vessel:
- (a) cargo vessels of 500 gross tonnage or more that are certified as meeting the requirements of Chapter I of SOLAS;
- (b) passenger vessels that are certified as meeting the requirements of Chapter I of SOLAS;
- (c) fishing vessels of 24 m or more in length overall;
- (d) pleasure craft of 300 gross tonnage or more that are not engaged in trade; or
- (e) cargo vessels of 300 gross tonnage or more but less than 500 gross tonnage.
Other vessels — 500 gross tonnage or more
(1.1) Subject to subsection (2), Canadian vessels of 500 gross tonnage or more in polar waters and foreign vessels of 500 gross tonnage or more in a shipping safety control zone, other than vessels referred to in paragraphs (1)(a) to (d), must conform to the requirements of Chapter XIV of SOLAS that are applicable to vessels certified as meeting the requirements of Chapter I of SOLAS.
Exceptions
(2) Subsections (1) and (1.1) do not apply to vessels that do not have a mechanical means of propulsion.
3 The portion of section 11 of the Regulations before paragraph (a) is replaced by the following:
Requirements
11 Any Canadian vessel referred to in paragraph 6(1)(a) or (b) or subsection 6(1.1) that was constructed on or after January 1, 2017 and is intended to operate in low air temperature must meet the following requirements if it navigates in polar waters:
Canada Shipping Act, 2001
Administrative Monetary Penalties and Notices (CSA 2001) Regulations
| Item | Column 1 Provision of the Arctic Shipping Safety and Pollution Prevention Regulations |
Column 2 Range of Penalties ($) |
Column 3 Separate Violation for Each Day |
|---|---|---|---|
| 1.1 | Subsection 6(1.1) | 2,625 to 250,000 | X |
Coming into Force
5 These Regulations come into force on the day on which they are registered.
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