Singapore's Civil Aviation Authority (CAAS) announced a postponement of the expected implementation of a sustainable aviation fuel (SAF) levy. Originally scheduled for October 1, 2023, the levy will now take effect from January 1, 2027, for tickets sold beginning October 1, 2023. The move reflects concerns over the ongoing conflict in the Middle East, which has impacted airline operations and passenger behavior.
The levy was designed to encourage the use of sustainable aviation fuel by applying charges ranging from S$1 to S$41.60 per passenger, depending on the destination and class of travel. Funds collected were intended to support SAF procurement efforts aimed at reducing aviation emissions. CAAS indicated that while the levy is postponed, Singapore remains committed to its aviation decarbonization goals.
Future targets and industry efforts
CAAS continues to aim for sustainable aviation fuel to account for 1% of all jet fuel used at Changi and Seletar airports in 2027, with a long-term goal of increasing to 3-5% by 2030. The Singapore Sustainable Aviation Fuel Company (SAFCo) will proceed with its voluntary pilot project this year, focusing on central procurement of SAF to support these targets. CAAS Director-General Han Kok Juan emphasized ongoing industry collaboration and vigilant monitoring of global developments to realize Singapore's aviation sustainability ambitions.
