Singapore Implements SAF Levy for Departing Flights From October 2026

The Civil Aviation Authority of Singapore (CAAS) has announced the implementation of a mandatory levy to support the adoption of Sustainable Aviation Fuel (SAF). The fee will apply to all passengers on flights departing from Singapore's Changi Airport on or after October 1, 2026. This initiative is a core component of the Singapore Sustainable Air Hub Blueprint, a national plan designed to decarbonize the country's aviation sector.

The introduction of the Singapore sustainable aviation fuel levy makes the nation the first country to implement such a charge for passengers. The policy aims to create a stable demand signal for cleaner fuels and help the aviation industry meet its long-term environmental targets. Funds collected from the levy will be used for the central procurement of SAF, which currently costs two to five times more than conventional jet fuel. By purchasing in bulk, CAAS aims to achieve more competitive pricing and provide cost certainty for airlines operating out of the major international hub.

Levy Structure and Financial Impact

According to CAAS, the levy amount will be fixed based on flight distance and travel class, ensuring a tiered contribution from passengers. For tickets sold from April 1, 2026, the following fees will apply:

• Economy Class: The levy will range from S$1 for short-haul flights to S$10.40 for long-haul flights.
• Premium Classes (Business and First): Passengers will face a higher levy, ranging from S$4 to S$41.60, depending on the flight distance.

These figures represent a reduction from initial proposals, a change attributed to a moderation in global SAF prices. Han Kok Juan, Director-General of CAAS, stated, "The levy is lower than previously indicated because the price of SAF has 'moderated'. We are also giving time for passengers to adjust to the SAF levy." He also noted that the amounts could be revised in the future to align with Singapore's evolving sustainability goals.

The levy will also extend to air cargo, with rates set between S$0.01 and S$0.15 per kilogram. Importantly, transit passengers connecting through Changi Airport will be exempt from the fee. The charge will be displayed as a distinct line item on airline tickets, providing transparency to consumers.

Regulatory Framework and National Targets

The legal basis for this initiative is provided by the Civil Aviation Authority of Singapore (Amendment) Act 2025. The levy directly supports Singapore's national SAF mandate, which requires that 1% of all jet fuel used at its airports be SAF starting in 2026. This is a key pillar of the Singapore Sustainable Air Hub Blueprint, which was officially launched in February 2024.

Looking ahead, the national target for SAF integration is set to increase significantly. The government aims for SAF to constitute 3-5% of total jet fuel consumption by 2030. The revenue generated by the levy is critical to achieving these targets by underwriting the higher cost of these biofuels.

Global Context and Industry Precedent

While Singapore is the first to implement a direct passenger levy, its move is part of a broader global trend towards aviation decarbonization. The European Union and the United Kingdom have already established SAF blending mandates that commenced in 2025, requiring airlines to mix a certain percentage of SAF with conventional fuel. Singapore's approach differs by creating a centralized fund to manage procurement rather than placing the direct purchasing obligation on individual airlines.

This centralized model, managed by CAAS, is designed to aggregate demand and leverage economies of scale. Industry analysts suggest this could create a more stable and predictable market for SAF producers, potentially encouraging investment in production capacity in the region. The transparency of the levy also directly communicates the cost of sustainability to the end consumer, a strategy that could influence public perception and support for environmental initiatives in air travel.

What Comes Next

Airlines and booking systems will begin incorporating the SAF levy for all tickets sold from April 1, 2026, for travel on or after the October 1, 2026 implementation date. CAAS will continue to monitor the global SAF market and may adjust the levy in future years based on price fluctuations and the country's progress toward its 2030 targets. The initial 1% mandate in 2026 will serve as a critical test for the framework's effectiveness in stimulating SAF supply and managing costs for one of the world's busiest air hubs.

Why This Matters

Singapore's introduction of a mandatory SAF levy establishes a new model for funding aviation's green transition. As a major global air hub, its policy could influence other nations considering similar measures to meet commitments set by the International Civil Aviation Organization (ICAO). The success of this centrally managed procurement system will be closely watched by airlines, regulators, and fuel producers worldwide as the industry grapples with the high cost and limited supply of sustainable fuels.

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