Singapore will delay the implementation of its sustainable aviation fuel (SAF) levy for departing cargo flights by one year, giving the air freight industry additional time to establish a workable system for collecting the charge, ESG News reported.
The passenger SAF levy will be introduced as planned. Passengers departing Singapore from January 1, 2027, will pay the levy on tickets purchased from October 1, 2026.
For cargo flights, the levy will apply to services sold from October 1, 2027, covering flights departing Singapore from January 1, 2028.
Singapore’s Civil Aviation Authority (CAAS) said the additional year was necessary because of the greater operational complexity of air cargo transactions, which can involve airlines, express operators, freight forwarders, shippers and different commercial arrangements.
“Taking into account industry feedback, the one-year deferment will allow more time for CAAS to work with the industry to develop and implement a robust sustainable aviation fuel levy collection mechanism for cargo shipments on departing flights,” the authority said.
Singapore advances passenger SAF levy
The SAF levy is part of Singapore’s wider strategy to decarbonise its aviation sector. Under the Singapore Sustainable Air Hub Blueprint, launched in February 2024, the country aims to reduce domestic aviation emissions from airport operations by 20% by 2030 and achieve net-zero domestic and international aviation emissions by 2050.
SAF is central to the strategy. Singapore plans to require SAF for departing flights, initially targeting a 1% SAF share, with the proportion expected to rise as supplies increase.
CAAS estimates SAF could account for nearly two-thirds of the emissions reductions required for aviation to achieve net zero by 2050.
The levy will help finance SAF procurement while aggregating demand for lower-carbon aviation fuel.
Passenger levy ranges from $0.79 to $32.80
The passenger levy will vary based on flight distance and cabin class. An economy-class passenger on a short-haul flight will pay $0.79, while the charge for a business-class passenger travelling to the Americas could reach $32.80.
The levy takes into account the quantity of SAF required to meet Singapore’s target and the premium SAF commands over conventional jet fuel, along with certification, blending and delivery costs.
Revenue will be channelled into a dedicated SAF Fund, which will be used to purchase SAF or associated environmental attributes.
The Singapore Sustainable Aviation Fuel Company (SAFCo), a CAAS-owned non-profit, will administer the system. It will collect levies, aggregate demand and manage the procurement, accounting and allocation of SAF and related environmental attributes.
SAFCo plans to issue a request for proposals for SAF procurement by the end of 2026, with the first batch of fuel expected to arrive in mid-2027.
