Singapore will impose a new levy on departing flights to support the use of sustainable aviation fuel and reduce carbon emissions. The law, passed by parliament on Tuesday, aims to encourage airlines to adopt greener fuel while limiting the impact on airfares.
The levy will be collected by the Civil Aviation Authority of Singapore, which will manage the procurement and distribution of sustainable aviation fuel, Senior Minister of State for Transport Sun Xueling told parliament.
Singapore plans to raise the use of sustainable aviation fuel to over 1 percent by 2026 and further increase it to between 3 percent and 5 percent by 2030. The cost of the levy will be shared across all air transport users, with early estimates suggesting that passengers on an economy class direct flight may pay between S$3 ($2.30) and S$16, depending on the distance.
Globally, sustainable aviation fuel is expected to account for only 0.7 percent of aviation fuel this year, while air travel is projected to grow by six percent, pushing emissions higher. The International Air Transport Association has highlighted that SAF could contribute around 65 percent of the emissions reduction needed for the aviation industry to achieve net zero by 2050.
Sun Xueling added that Singapore will aggregate the demand for SAF across all airlines and procure it centrally. This approach is designed to secure better commercial terms with fuel suppliers and make the adoption of green fuel more cost-effective for airlines.
The move aligns with Singapore’s broader climate goals and signals a significant step in promoting sustainable aviation practices, while maintaining stable air travel costs for passengers.
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