In March 2026 while visiting Yellowknife, in the Northwest Territories, Mark Carney, Prime Minister of Canada, declared that: “After decades of limited and piecemeal investments in the North, Canada’s new government is acting with a scale of ambition worthy of this vast region and its peoples. We are securing every corner of this terrain, unlocking its vast resources, and delivering the strong, connected network of communities that Northerners deserve. In this new era, we cannot rely on other nations for our security and prosperity. We are defending and building together, the true North, strong and free.”
Indeed, the PM disclosed planned government investments in defence, infrastructure, and Northern development to strengthen and secure Canada’s presence in the Arctic and unleash the North’s economic potential. The announcement is very important and noteworthy as the federal government has been accused in the past of ignoring its Arctic territories and waters. However, with climate change, all that has changed with the longer season for open Arctic waters in the current shipping lanes. The defence of Canada’s north has also now been given a much higher priority. The proposed investments will include:
- Investing $6.5 billion in a new Arctic Over-the-Horizon Radar system, in partnership with Australia, to enhance early warning and surveillance across Arctic approaches.
- Investing over $1.3 billion across multiple Northern infrastructure programs – supporting trade corridors, airports, marine safety, and community harbours.
- Leveraging more than $1.6 billion from partners to strengthen transportation and marine infrastructure in Arctic and Northern communities.
- Investing $1 billion through the Arctic Infrastructure Fund for strategic transportation infrastructure for both civilian and military use – to strengthen Canada’s Arctic security and year-round defence readiness.
- Dedicating approximately $420 million to strengthen the year-round presence and operational capability and capacity of Canadian Armed Forces in the Arctic and the North.
Canada selected German shipbuilder ThyssenKrupp Marine Systems (TKMS) in July 2026, as the preferred supplier to build up to 12 new submarines capable of operating in Artic waters. This represented the largest military procurement deal in Canadian history. In addition, new Arctic and offshore patrol ships have been ordered under Canada’s National Shipbuilding Strategy. Already, the Canadian Coast Guard (CCG) officially welcomed the CCGS Judy LaMarsh as its newest large vessel into active service in September 2026. With two more ice-capable ships on the horizon, the CCG is set to enhance safety, sovereignty, and ocean research across our waters.
At this time, the privately owned port of Churchill, located on the shores of Hudson Bay in Northern Manitoba, is Canada’s only deep-water Arctic seaport connected to a surface rail network. Seen as a possible major project, the government is looking to obtain investment in order to enlarge the port’s capabilities given the increasing shipping of bulk resources during the open-water season from late July to early November. This would include bulk grain, general cargo, and critical minerals (such as zinc and potash) destined for international markets. Included in the proposal would be larger exploratory concepts involving potential offshore liquefied natural gas (LNG) terminals, notably of great interest to the Europeans.
Canada also recognized the increasing interest in the Arctic passage, referred to as the Northwest Passage, as a new sea lane connecting the Atlantic and Pacific oceans through the icy channels of the Canadian Arctic Archipelago. The U.S., Russia and China have especially tested these waters, often without Canada’s blessing. For this reason, Canada and Norway continue to work together to bolster deterrence and defence in the Arctic. Obviously, Arctic security is a national security issue for both countries. In March 2026, Canada and Norway established a bilateral Arctic Dialogue to strengthen cooperation across key areas, including strategic surveillance, situational awareness, interoperability, and research & development. Practical cooperation is also underway through a partnership agreement signed in June 2026 between the Canadian and Norwegian Coast Guards. Both services have already undertaken joint training exercises in Canadian and Norwegian Arctic waters.
