Singapore finalizes passenger SAF levy for all flights departing Changi Airport.

Singapore has finalized the details of its pioneering sustainable aviation fuel (SAF) levy, a fixed-rate fee that will apply to all passengers departing from Singapore Changi Airport (SIN) beginning October 1, 2026. The move, announced by the Civil Aviation Authority of Singapore (CAAS), marks a significant step in the global effort to decarbonize the aviation industry.

The levy is designed to fund the nation's ambitious goal of incorporating cleaner fuels into its aviation ecosystem. According to CAAS, the funds will be used to support a national target for SAF to constitute 1% of all jet fuel used at Singapore's airports in 2026, with a goal to increase this to 3-5% by 2030.

Levy Details for Passengers and Cargo

The cost of the levy will vary based on flight distance and the class of travel. Passengers in economy class can expect to pay between S$1.00 and S$10.40, while those in premium cabins will be charged from S$4.00 to S$41.60. In U.S. dollars, this equates to a range of approximately $0.75 to $32 per ticket. The levy will also be applied to cargo shipments on a per-kilogram basis.

This initiative is a core component of the Singapore Sustainable Air Hub Blueprint, a strategic plan to reduce the environmental impact of one of the world's busiest air hubs. The high cost of SAF, which is currently 3-5 times more expensive than conventional jet fuel, is a primary driver for implementing the levy. By creating a dedicated funding stream, Singapore aims to make the adoption of cleaner fuels economically viable for airlines operating out of the country.

A Centralized Approach to Procurement

To manage costs and secure a stable supply, CAAS has established a non-profit entity, Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), to centrally procure SAF for the entire Singapore air hub. This centralized model is intended to aggregate demand from all airlines, providing greater purchasing power and potentially lowering the overall cost of SAF.

The move aligns with the global aviation industry's long-term goal of achieving net-zero carbon emissions by 2050, a target set by the International Air Transport Association (IATA). According to IATA, SAF is the most significant tool for decarbonization, expected to contribute to 65% of the emissions reduction needed to reach this goal. While other regions like the European Union have introduced SAF blending mandates, Singapore's direct passenger levy is described as a world's first, setting a potential precedent for other nations.

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