Singapore Mandates Green Fuel Tax: How Will Changi Airport Fund Its 2030 SAF Target?

The Civil Aviation Authority of Singapore (CAAS) is introducing a new Sustainable Aviation Fuel (SAF) Levy. This levy applies to all passengers and cargo departing from Singapore's airports, including Changi Airport (SIN). It is a key part of Singapore's aviation decarbonisation roadmap.

Singapore is the first country to impose a passenger-based green fuel tax. The goal is to fund the purchase of SAF. This move supports a mandatory SAF blending target for all departing flights.

The Mandatory SAF Levy

Key Details and Timeline

The SAF Levy will apply to tickets sold from April 1, 2026. It covers flights departing on or after October 1, 2026. The levy amount varies by flight distance and travel class.

Economy class passengers on short-haul flights will pay as little as S$1.00. Long-haul flights to the Americas will incur a levy of S$10.40 for economy travelers. Premium cabin passengers will pay four times the economy rate for the same route. This is based on carbon emissions calculations from the International Air Transport Association (IATA).

The maximum charge for a premium passenger is S$41.60. Cargo shipments and general aviation flights also face a separate fee structure. Importantly, passengers transiting through Singapore are exempt from this new charge.

Funding the 2030 SAF Target

The funds collected will be channeled into a statutory SAF Fund. This fund will be used solely to centrally procure SAF and its environmental attributes. The centralized procurement aims to secure a more stable and affordable supply.

Singapore has set a mandatory SAF blending target of 1% for 2026. The long-term goal is a 3-5% SAF adoption by 2030. This target depends on global developments and the wider availability of SAF.

SAF is crucial for the aviation sector to reach its net-zero emissions goals. The Civil Aviation Authority of Singapore (CAAS) estimates SAF could account for nearly two-thirds of the sector's required emissions reductions by 2050.

Impact on Changi Airport and Global Hub Status

The introduction of the levy comes as Changi Airport passenger traffic reaches new heights. The airport handled approximately 70 million passengers in 2025. This figure surpassed the pre-pandemic record of 68.3 million set in 2019.

The strong recovery reinforces Singapore’s position as a global air hub. The government is proceeding with plans for the technology-intensive Terminal 5. This terminal is being designed to support the use of cleaner fuels.

• Challenge: The main challenge is the high cost and limited supply of SAF globally. The levy is designed to bridge this cost gap.
• Opportunity: Singapore is establishing a clear mechanism for funding the SAF transition. This sets a precedent for other global aviation hubs.

The move aligns with global sustainability efforts led by bodies like the International Civil Aviation Organization (ICAO). The aviation industry is closely watching this development for its impact on ticket pricing and SAF market growth. For more commercial aviation news, visit flying.flights.