Singapore's Civil Aviation Authority (CAAS) has announced a delay in the implementation of its planned sustainable aviation fuel (SAF) levy, moving the start date to 2027. The measure, originally scheduled to commence on 1 April, forms part of Singapore's broader decarbonisation strategy for aviation. The postponement allows the country to better align with global developments and ensure stability during uncertain geopolitical times.
Previously, CAAS indicated that departing passengers from Singapore would pay a levy based on the volume of SAF required to meet a 1% SAF target by 2026, with charges varying by destination and class of travel. The revised schedule now applies the levy to tickets sold from 1 October, for flights departing from 1 January 2027. The fee structure considers route distance, travel class, and aircraft size, with exemptions for humanitarian and certain training flights.
Singapore Reaffirms Commitment to Sustainability
Ham Kok Juan, director general of CAAS, reaffirmed Singapore's dedication to reducing aviation emissions. "Singapore remains firmly committed to aviation decarbonisation," he said, emphasizing that work will continue with industry partners to monitor and adapt to evolving global standards.
The revenue generated will be allocated to a SAF Fund, managed by CAAS through SAFCo, which is responsible for securing sustainable fuel supplies and environmental credits. The country aims to increase SAF's share in its fuel mix from 1% in 2026 to between 3% and 5% by 2030, leveraging innovative partnerships with Neste and Aether Fuels for SAF production at the Project Beacon demonstration plant, expected to produce 2,000 tonnes annually by 2028. Neste, which already supplies SAF from its Singapore refinery, has plans to expand its capacity and infrastructure at Changi Airport to facilitate regional distribution, underscoring Singapore’s ambition to be a regional hub for sustainable aviation fuels.
Singapore's strategic focus on SAF is part of a comprehensive effort to reduce aviation’s carbon footprint while fostering a resilient and competitive air hub. Though the levy's implementation has been postponed, the country remains committed to responsible environmental stewardship and sustainable growth in aviation.
