Singapore (Commonwealth Union)_ Singapore has passed a new law that will require flights flying out of the country to pay a levy aimed at reducing carbon emissions from the aviation sector. The funds raised will go toward purchasing sustainable aviation fuel (SAF), a cleaner alternative to traditional jet fuel. The bill was passed unanimously in Parliament on Tuesday. Accordingly, Senior Minister of State for Transport Sun Xueling explained during the debate that the new fee will be collected by the Civil Aviation Authority of Singapore (CAAS), which will manage the procurement and distribution of SAF for flights departing from Singapore.
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This move is part of Singapore’s wider strategy to make its aviation sector more environmentally sustainable. The government has set an initial target of using SAF for at least 1% of total jet fuel consumption at Changi and Seletar Airports by 2026. The plan is to gradually raise that share to between 3% and 5% by 2030. While the shift to sustainable fuel is necessary for meeting global climate targets, SAF is significantly more expensive than traditional jet fuel, costing around three to four times more, according to Ms Sun. To avoid placing a sudden financial burden on airlines and passengers, Singapore is adopting what the government calls a “pragmatic and balanced approach.”
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Under the new policy, passengers on economy-class flights will see a small additional charge added to their ticket prices starting in 2026. Based on preliminary estimates, the SAF levy could be around S$3 (US$2.20) for short-haul routes such as Bangkok, S$6 for mid-range destinations like Tokyo, and up to S$16 for long-haul flights to cities like London. These fees are intended to be reasonable and shared across all users of the air transportation system. The government has indicated that the cost increase for travelers will be small, and the legislation has been carefully crafted to prevent discouraging tourism or endangering Singapore’s status as a global transportation hub.
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To keep Singapore competitive, particularly in relation to Changi Airport’s role as a major international transit point, the levy will not apply to transit and transfer passengers. Exemptions will also be made for certain types of flights, including those used for flight training, humanitarian missions, and charitable purposes. Ms Sun noted that SAF remains the most realistic way to cut emissions in aviation in the short to medium term. It can be combined with current jet fuel and utilized without modifying existing aircraft or refueling infrastructure, making it a feasible option today. Despite this, global use of SAF remains restricted. This year, it’s expected to make up just 0.7% of total aviation fuel consumption worldwide, even as air travel continues to grow and emissions rise.
In response to concerns about greenwashing and the environmental impact of SAF production, Ms Sun reassured Parliament that all SAF procured by Singapore will meet strict standards set by the International Civil Aviation Organization. The government will also make sure that the feedstocks used for gasoline production are environmentally friendly and do not have unforeseen consequences. In order to strengthen its SAF supply chain, Singapore is entering into long-term agreements with energy suppliers and is investing in research on biofuels. Additionally, the Economic Development Board is in discussions with local refineries about upgrading their facilities for sustainable fuel production.
At the same time, research-related organizations are investigating and developing new technologies to enhance SAF productivity and scalability. Singapore’s aggregated strategy to buy SAF, which unifies demand across planes, would allow it to secure better supply terms and provide more stable access to fuel supplies. With new regulations in effect, Singapore joins a growing list of countries taking meaningful steps to cut aviation emissions. This levy is an early but important step toward a greener future for aviation, locally and globally.
