Singapore to Levy SAF Surcharge on Flights from October 2026

Singapore will implement a new levy on all departing flights to fund the use of Sustainable Aviation Fuel (SAF), with the policy taking effect for flights after October 1, 2026. The Singapore sustainable aviation fuel levy positions the city-state as a leader in aviation decarbonization policy within Southeast Asia, directly supporting its national emissions targets.

Levy Structure and Impact

The policy will directly impact passengers departing from Changi International Airport (SIN), with a surcharge ranging from S$1 (US$0.75) to S$41.60 (US$32). According to the Civil Aviation Authority of Singapore (CAAS), the fee depends on flight distance and cabin class. The lowest levy applies to economy-class flights within Southeast Asia, while the highest is for premium-cabin passengers on long-haul routes to the Americas. The funds are intended to support Singapore's national target of achieving 1% SAF usage in 2026, with a goal of rising to 3-5% by 2030. Daniel Ng, chief sustainability officer at the CAAS, stated the levy allows "all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub."

Regional SAF Production Hub

This regulatory action supports Singapore's growing role in SAF production. The nation is home to the region's largest SAF plant and is set for further expansion, with Aether Fuels expected to begin construction on a new facility in 2026. This development is part of a wider trend across Southeast Asia, which has strong potential for SAF feedstock from agricultural and forest waste. Tat Chuan Goh of Aether Fuels noted that momentum for the industry "is clearly building up." However, experts from the International Air Transport Association (IATA) emphasize that continued government support is crucial for market growth.

Global Context and Goals

Aviation accounts for approximately 2.5% of global energy-related CO2 emissions, per data from the International Energy Agency (IEA). The International Civil Aviation Organization (ICAO) has established a long-term goal for the industry to reach net-zero carbon emissions by 2050. SAF is considered the most significant contributor to this goal, with ICAO estimating it could account for about 65% of the necessary emissions reductions. While the global SAF market is growing, it faces some uncertainty due to policy shifts in key markets like the United States.

Key Takeaways

• Implements a mandatory Sustainable Aviation Fuel (SAF) levy for all flights departing Singapore from October 1, 2026.
• Sets national targets for 1% SAF usage in 2026, increasing to 3-5% by 2030.
• Structures the levy based on flight distance and cabin class, ranging from S$1 to S$41.60.
• Funds the direct purchase of SAF to help the aviation industry meet ICAO decarbonization goals.

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