The Civil Aviation Authority of Singapore (CAAS) will introduce a Sustainable Aviation Fuel (SAF) Levy for all origin-destination passengers and general and business aviation flights departing Singapore from 1 January 2027. This levy will be applicable to tickets or services sold from 1 October 2026, and must be clearly listed in the fare breakdown.
The SAF Levy, as outlined in the Civil Aviation Authority of Singapore (Amendment) Act 2025, will fund the purchase of SAF and related environmental attributes (EAs), covering administrative costs. The Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a non-profit entity owned by CAAS, will manage the levy collection and procurement of SAF and EAs. SAFCo will ensure the process is transparent and compliant with international sustainability standards, including the International Civil Aviation Organisation’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
SAFCo’s framework will allocate Scope 1 EAs to aircraft operators based on their SAF Levy contributions, supporting ICAO’s goal of net zero carbon emissions by 2050. Scope 3 EAs will be available for organisations aiming to reduce emissions from business travel and air freight.
In August 2026, SAFCo completed its first voluntary SAF trial with nine companies, including Singapore Airlines and Scoot, demonstrating collaboration in aviation decarbonisation. A Request for Proposal for SAF procurement from the SAF Levy is expected by the end of 2026, with delivery anticipated in mid-2027.
The SAF Levy for air cargo shipments will be deferred by one year, applying to services sold from 1 October 2027 for flights departing from 1 January 2028. This delay allows CAAS to develop a robust levy collection mechanism for the diverse cargo operations sector.
