Canada Arctic Security
Canada’s North consists of the territories of Yukon, the Northwest Territories, and Nunavut making up 40% of the country’s total landmass. Despite this, Canada’s North has a population of just over 118,000. Canada’s Arctic sovereignty is increasingly under threat from the loss of sea ice, resulting in the opening of shipping lanes, and an evolving geopolitical context.
In June 2025, the Government of Canada (GAC) announced its commitment to increase its defense spending to meet NATO’s target of investing 5% of GDP in defense. It will achieve a 2% target this year, as the government has pledged to spend over CAD 9 billion in 2025-26. As part of an announcement on the Arctic in March 2025, GAC allocated CAD 420 million to enhance Arctic operations, and they are planning to develop new drones and sensors for monitoring the seafloor and the Arctic. It also expands the reach, security mandate, and abilities of the Canadian Coast Guard. Canada plans to integrate them into its NATO defense capabilities to secure their sovereignty and expand maritime surveillance.
As a part of Canada’s NORAD modernization project, GAC has allocated funding towards projects to protect Canada’s Arctic sovereignty. This includes CAD 6.69 billion in funding over the next two decades to improve and modernize Canada’s surveillance systems. Canada has also ear-marked CAD 15.6 billion over the next 20 years for NORAD Infrastructure projects, including upgrades at four locations in Canada’s North.
As announced in GAC’s 2024 defense budget, Our North, Strong and Free, Canada plans to improve its Marine and Air infrastructure by upgrading its Naval and Air Navigation Aids and upgrading NORAD’s communications network. The government has set aside CAD 1.4 billion over 20 years to acquire special maritime sensors for Canada’s Arctic operations, and CAD 4.13 billion over 20 years to improve Canada’s air navigation and communications networks.
Through Research and Development Canada, GAC has committed CAD 4.23 billion over the next 20 years to establish a science and technology program that will assess new and emerging threats, assessing and co-developing technological solutions with the United States. GAC recently announced further funding to support its northern military operations. This includes CAD 218 million in funding over five years to create northern operation support hubs.
The U.S. Commercial Service in Canada is closely following the developments in Canada’s Arctic Security. We stand ready to support advocacy efforts and export promotion efforts. For further information, please contact: