Singapore defers SAF levy amid Middle East tensions

The Civil Aviation Authority of Singapore (CAAS) announced on Wednesday that a planned levy on travellers to fund sustainable aviation fuel (SAF) has been postponed. Originally scheduled to commence on 1 April, the initiative has been pushed back due to the ongoing impact of the Middle East conflict on the global aviation industry and its passengers.

The levy is now set to apply to tickets and services sold from 1 October this year for flights departing from 1 January 2027.

Under the revised timeline, the 1% sustainable aviation fuel target for Changi and Seletar airports will now take effect in 2027, rather than 2026. However, CAAS confirmed that the longer-term goal of reaching a 3% to 5% SAF blend by 2030 remains unchanged. The levy, which ranges from approximately S$1 to S$41.60 depending on destination and travel class, will apply to all origin-destination passengers and cargo shipments, as well as business and general aviation flights.

Despite the delay, a voluntary trial led by the Singapore Sustainable Aviation Fuel Company (SAFCo) will proceed as planned this year to support the transition. Han Kok Juan, Director-General of CAAS, emphasised that the nation’s environmental objectives remain a priority despite the temporary setback.

“Singapore remains firmly committed to aviation decarbonisation. We are taking a pragmatic pause in view of the current situation,” said Han. “We will continue to work closely with our aviation industry partners and monitor global developments.”

The authority further clarified its position on future targets, stating: “Our intent is still to raise the target to 3 to 5 per cent by 2030, subject to global developments and the wider availability and adoption of sustainable aviation fuel.”

Previous Article

KKR agrees $4.75bn sale of liquid cooling leader CoolIT to Ecolab

Next Article

SHEIN partners with DHL to bolster SAF adoption




Related News