Singapore’s parliament on Tuesday passed a bill imposing a fixed levy on departing flights to reduce emissions and promote the use of sustainable aviation fuel (SAF) by airlines, reports Ittefaq.com.
Senior Minister of State for Transport Sun Xueling told parliament that the levy will be collected by the Civil Aviation Authority of Singapore, which will use the funds to procure and manage SAF.
Singapore aims to increase the use of SAF to more than 1% by 2026, with plans to raise it further to 3–5% by 2030. Authorities have said that the levy will not lead to a significant rise in airfares. The cost will be shared by all air transport users, with initial estimates suggesting a levy of S$3 (US$2.30) per passenger on an economy class direct flight, depending on distance.
The International Air Transport Association (IATA) estimates that SAF could account for around 65% of the reductions needed for the aviation industry to reach net zero carbon emissions by 2050. However, global use of SAF remains very low, projected to make up only 0.7% of aviation fuel this year, while air travel is expected to grow by 6%, driving emissions higher.
Singapore plans to aggregate SAF demand across airlines and procure the fuel centrally, allowing the country to negotiate better terms with suppliers, Sun said.
Meanwhile, in Thailand, the Department of Energy Business reported that the country’s first standard for SAF specifications is expected this month, with enforcement scheduled from January 1 next year, supporting efforts to reduce aviation’s carbon footprint.
