Singapore: Travelers flying out of Singapore will start paying a new charge this year as the government moves to support cleaner aviation fuel and strengthen the country’s role in Southeast Asia’s emerging sustainable fuel industry, Malaysia Sun reported.
Under the plan, passengers departing from Changi International Airport will pay a levy on tickets sold after April 1 for flights departing on or after October 1. The charge will range from 1 Singapore dollar (about 75 U.S. cents) to 41.60 Singapore dollars (about US$32), depending on travel distance and seating class. Changi handled a record 70 million passengers last year.
Economy-class travelers flying within Southeast Asia will pay the lowest amount, while passengers in premium cabins on long-haul routes to the Americas will face the highest charge. Air cargo shipments will also be subject to a levy based on distance and weight. The surcharge will be shown separately on flight tickets and cargo contracts.
The funds collected will support Singapore’s use of sustainable aviation fuel, or SAF, which is commonly produced from used cooking oil or agricultural waste. Airlines view SAF as a practical way to reduce emissions without changing aircraft design.
Daniel Ng, chief sustainability officer at the Civil Aviation Authority of Singapore, said the levy is intended to spread the cost of sustainability across all users of the aviation hub while keeping it affordable.
Singapore already hosts Southeast Asia’s largest SAF production facility and is set to begin construction of a next-generation plant later this year. Supply agreements have been signed with airlines including JetBlue and Singapore Airlines.
Other countries in the region are also moving ahead. Thailand opened a new SAF plant in Bangkok in 2025, while Malaysia and Vietnam reached key domestic production milestones last year. Indonesia has announced plans to expand output, and the Philippines is easing regulations to attract fuel producers.
Tat Chuan Goh of Aether Fuels, which is developing Singapore’s new plant, said the industry is still at an early stage but is gaining momentum. He added that Southeast Asia’s access to farm and forest waste gives it strong potential to scale up production.
Aung Soe Moe, a senior air transport official at the Association of Southeast Asian Nations, said the region could produce up to 8.5 million barrels of SAF per day by 2050 if growth is managed carefully.
Kelvin Lee of the International Air Transport Association said global attention is increasingly focused on SAF production in Southeast Asia, but added that continued government support will be needed to maintain progress.
Aviation currently accounts for about 2.5 percent of global carbon emissions, according to the International Energy Agency, and demand for air travel continues to grow. The International Civil Aviation Organization has set a target of net-zero emissions by 2050, estimating that SAF could reduce aviation emissions by around 65 percent.
However, global growth in SAF production is expected to slow for the first time since large-scale output began in 2018, partly due to uncertainty following recent policy changes in the United States.
Preeti Jain of the International Air Transport Association said policy shifts in the U.S. have created uncertainty, but noted that incentives have not disappeared entirely and discussions are ongoing.
