Civil Aviation Authority of Singapore introduces new SAF levy

The Civil Aviation Authority of Singapore announced Nov. 10 that it will introduce a sustainable aviation fuel (SAF) levy for all origin-destination passengers, origin-destination cargo shipments, and general- and business-aviation flights departing Singapore from Oct. 1, 2026, applicable for tickets or services sold from April 1, 2026. 

The amount of the SAF levy is set based on the volume of SAF needed to meet the 1 percent SAF target for 2026 and the projected price premium of SAF over conventional jet fuel and other associated costs, including the cost of certification, blending and delivery. 

As longer flights consume more fuel, the SAF levy varies based on the distance traveled.  

For simplicity and ease of administration, all destinations from Singapore are grouped into four geographical bands.  

For flights with multiple stops, the SAF levy applicable is based on the immediate next destination after departing Singapore.  

The SAF levy for origin-destination cargo shipments is set on a per-kilogram basis and varies based on the distance traveled, categorized by the four geographical bands.  

The aircraft operator will collect the SAF levy and must display the SAF levy as a distinct line item on the air-cargo contract.  

The SAF levy for general- and business-aviation flights is charged on a per-aircraft basis and varies based on the distance traveled, categorized by the four geographical bands, and the aircraft’s International Civil Aviation Organization (ICAO) codes A-F for aircraft wingspan, which serve as a proxy for aircraft size.  

Certain flights, such as training flights and flights for charitable or humanitarian purposes, will not be subject to the SAF levy.  

The SAF Levy collected will go into a statutory SAF fund managed by CAAS.  

The fund will be used solely for the purchase of SAF and/or SAF environmental attributes (EAs) and to cover associated administrative costs.  

The Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) will manage the procurement, allocation and administration of SAF and EAs, to get best value for money and ensuring transparency and accountability in the use of the fund. 

CAAS will continue to engage airlines, aircraft operators and other industry stakeholders in the coming weeks and work with them on implementation. 

“The introduction of the SAF levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub,” said Han Kok Juan, director-general of CAAS. “It provides a mechanism for all aviation users to do their part to contribute to sustainability at a cost, which is manageable for the air hub. We need to make a start. We have done so in a measured way, and we are giving industry, businesses and the public time to adjust.” 

ICAO has set a long-term aspirational goal of net-zero carbon emissions for international aviation by 2050.  

As a member of the international civil aviation community and an ICAO council member, Singapore is committed to working towards that goal and will do so in a practical manner, advancing both sustainability and competitiveness of its air hub, not one at the expense of the other, CAAS said.  

In 2024, CAAS launched the Singapore Sustainable Air Hub Blueprint, which sets out Singapore’s balanced approach to the long-term, sustainable growth of Singapore’s aviation sector.  

Under the blueprint, CAAS will work with aviation stakeholders to reduce domestic aviation emissions from airport operations by 20 percent from 2019 levels (404ktCO2e) in 2030 and achieve net-zero domestic and international aviation emissions by 2050. 

To view tables on the SAF levy, click here.