Singapore reveals world’s first green fuel tax on flights

November 18, 2025 at 02:40 PM•2 min read•Cde

Singapore is about to make your next flight a little more expensive, but for a very specific reason: sustainable aviation fuel. How much more will you pay?

Key Points

1Singapore introduces a Sustainable Aviation Fuel (SAF) levy for all passengers departing from the country.
2The levy is based on the volume of SAF needed to meet the 1% SAF target for 2026 and the price premium of SAF.
3The levy varies based on flight distance, categorized into geographical bands with different charges.
4Flights transiting through Singapore are exempt from the SAF levy.
5Airlines must display the SAF Levy as a distinct line item on air tickets.
6The initiative is part of Singapore's Sustainable Air Hub Blueprint, aiming for net-zero emissions by 2050.

Singapore is set to become the first country to implement a Sustainable Aviation Fuel (SAF) levy on air travelers departing from the nation. The Civil Aviation Authority of Singapore (CAAS) confirmed the SAF Levy, designed to help meet its target of 1% SAF usage by 2026. The levy aims to address the price premium of SAF and associated costs. Flyers transiting through Singapore will be exempt from the charge. Airlines are required to display the SAF Levy as a distinct line item on air tickets. Certain flights, such as training and humanitarian flights, are excluded.

The SAF levy varies based on the distance of the flight, divided into geographical bands. Flights to Europe, Africa, Central and West Asia, the Middle East, Pacific Islands, and New Zealand (Band Four) will incur a S$6.40 (€4.24) tax for economy cabins and S$25.60 (€16.96) for premium cabins. Flights to the Americas (Band Five) will be subject to a S$10.40 (€6.89) and S$41.60 (€27.57) charge, respectively. Northeast Asia, South Asia, Australia, and Papua New Guinea (Band Two) face charges of S$3.80 (€2.52) and S$11.20 (€7.42). Southeast Asia (Band One) will have the lowest levy at S$1 (€0.66) or S$4 (€2.65), depending on cabin class.

For flights with multiple stops, the SAF levy applies only to the immediate next destination after departing Singapore. For instance, a flight from Singapore to Paris via Amsterdam will only be levied on the Singapore-Amsterdam leg. The CAAS released the Singapore Sustainable Air Hub Blueprint last year, outlining the country's approach to sustainable aviation growth. The plan targets a 20% reduction in domestic aviation emissions from airport operations by 2030 compared to 2019 levels, with a goal of net-zero domestic and international aviation emissions by 2050.

Director-General of CAAS, Han Hok Juan, emphasizes that the new rules represent a significant step in building a more sustainable and competitive air hub. He states that the levy provides a mechanism for all aviation users to contribute to sustainability at a manageable cost. The move signals Singapore's commitment to leading the way in sustainable aviation practices, encouraging the industry and the public to adapt to a greener future.