Singapore has approved a landmark bill on 14 October to impose a levy on all flights departing from the city-state to support the use of sustainable aviation fuel by airlines.
Singapore has set a target for sustainable aviation fuel to constitute 1 per cent of all jet fuel used at Changi Airport and Seletar Airport in 2026, before increasing the use to between 3% and 5% by 2030.
The levy, a first globally, will be paid to the Civil Aviation Authority (CAAS), which will manage demand and the bulk purchase of sustainable aviation fuel for all carriers refueling in Singapore.
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Singapore’s Senior Minister of State for Transport Sun Xueling noted that this centralised procurement allows for better commercial terms with fuel suppliers. She also said that these goals will not raise airfares significantly.
While the cost will be borne by all passengers departing from Singapore, the increase in airfares is expected to be modest. For economy flights, earlier estimates suggesting an additional S$3 (US$2.20) for short-haul flights such as to Bangkok, S$6 for mid-haul flights like Tokyo, and S$16 for long-haul flights.
According to the Singapore government, there are currently no plans to include transit and transfer passengers under the levy to maintain Changi’s competitiveness as an international air hub.
