Singapore will impose a sustainable aviation fuel (SAF) levy for flights departing the city state from 2026, as the country seeks to bolster its SAF ecosystem.
The Civil Aviation Authority of Singapore (CAAS) has set an initial uplift target of 1% by 2026, rising to 3-5% by 2030, although this will depend on the wider availability and adoption of SAF.
The CAAS says that SAF is a key part of the industry’s aspiration of meeting net-zero emissions by 2050.
“The levy will provide an important demand signal to fuel producers and give them the incentive to invest in new SAF production facilities,” says transport miniser Chee Hong Tat.
”Without an increase in supply, we will not be able to scale up the adoption of SAF in the years ahead.”
The CAAS will set a fixed rate for the levy, even if the cost of SAF ends up differing from projections. Moreover, passengers in premium cabins will pay a higher fee, as will passengers on longer flights.
For an economy-class passenger, a ticket to Bangkok will rise by S$3.00 ($2.23), while those flying to London will pay S$16.
The measure is part of the Singapore Sustainable Air Hub Blueprint, which lays out measures to reduce the aviation industry’s emissions.
Singapore already serves as a major petrochemical hub, which the report says provides a good base for SAF production.
Other measures Singapore will take include using more solar power at airports, clean energy airside vehicles, and changes to air traffic management procedures, such as introducing performance-based navigation.
The SAF levy will add to the list of charges imposed on passengers departing Singapore. These include the Passenger Service and Security Fee, Aviation Levy, and the Airport Development Levy.
