The Civil Aviation Authority of Singapore (CAAS) has announced the introduction of a Sustainable Aviation Fuel (SAF) Levy, effective from 1 April 2026, for flights departing Singapore from 1 October 2026. This levy will apply to all Origin-Destination passengers, cargo shipments, and general and business aviation flights, aiming to support Singapore’s sustainability goals in aviation.
The SAF Levy is designed to meet a 1% SAF target for 2026, reflecting the price premium of SAF over conventional jet fuel. The levy varies by distance, with destinations grouped into four geographical bands. For economy class passengers, charges will range from S$1.00 for Southeast Asia to S$10.40 for the Americas. Premium cabin passengers will pay four times the economy rate, aligning with industry norms for carbon emissions calculations.
Cargo shipments will incur a levy based on weight and distance, starting at S$0.01 per kilogramme for Southeast Asia. General and business aviation flights will be charged per aircraft, with fees varying by aircraft size and distance.
The levy will fund the purchase of SAF and its environmental attributes, managed by the Singapore Sustainable Aviation Fuel Company Ltd. CAAS Director-General Han Kok Juan stated, “The introduction of the SAF Levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub.”
Singapore aims to achieve net zero aviation emissions by 2050, with a 1% SAF uplift target for 2026, potentially increasing to 3-5% by 2030. The levy is part of broader initiatives under the Singapore Sustainable Air Hub Blueprint to decarbonise the aviation sector.
