Singapore’s Civil Aviation Authority of Singapore (CAAS) has announced a new Sustainable Aviation Fuel (SAF) levy, set to apply to all flights departing Singapore from 1 October 2026, with tickets or services sold from 1 April 2026.
The levy is designed to help Singapore meet its target of a 1 % uptake of SAF in 2026, supporting both sustainability and the competitiveness of its air hub.
The amount levied will vary by destination band and class of travel. Economy-class passengers flying to Southeast Asia (Band I) will be charged S$1.00, while those flying to the Americas (Band IV) will pay S$10.40. For Premium cabins, charges will be four times those amounts.
For air cargo, the levy will apply on a per-kilogramme basis: S$0.01 for flights to Southeast Asia, up to S$0.15 for flights to the Americas (Band IV).
General and business aviation flights will also incur the levy, based on distance and aircraft wingspan, with charges beginning at S$40 for the smallest aircraft on Band I routes.
“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 CAAS Director-General Han Kok Juan. “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.”
The funds collected will go into a statutory SAF Fund, managed by CAAS, and used solely for purchasing SAF and associated environmental attributes.
This move aligns with Singapore’s broader goal of achieving net-zero aviation emissions by 2050, with interim targets including a 20 % reduction in airport operational emissions by 2030 (from 2019 levels).
Implementation of the levy and stakeholder engagement will continue in the lead-up to April 2026, allowing airlines and operators time to prepare.
