Singapore’s parliament on Tuesday approved a bill introducing a fixed levy on departing flights to cut emissions and promote the use of sustainable aviation fuel (SAF) by airlines, reports Moneycontrol.
According to Senior Minister of State for Transport Sun Xueling, the levy will be paid to the Civil Aviation Authority of Singapore (CAAS), which will handle the procurement and management of SAF.
Singapore aims to raise the use of SAF to over 1% by 2026, with plans to further increase it to 3–5% by 2030. Authorities said the measure is unlikely to significantly affect airfares, as the cost will be shared across all air transport users. Estimates suggest the levy could range from S$3 ($2.30) to S$16 for an economy-class passenger on a direct flight, depending on distance.
The International Air Transport Association (IATA) estimates that SAF could account for around 65% of the emission reductions needed for the aviation industry to reach net-zero carbon emissions by 2050. However, global adoption remains very low, with SAF expected to make up just 0.7% of aviation fuel this year, while air travel is projected to grow by 6%, pushing emissions higher.
Sun said Singapore will aggregate SAF demand across airlines and procure the fuel centrally, allowing the country to secure better commercial terms with suppliers.
