Prime Highlights:

• Singapore will become the first country to introduce a Sustainable Aviation Fuel (SAF) levy for departing air travellers starting in 2026.
• The new charge aims to support cleaner aviation and strengthen Singapore’s role as a sustainable global air hub.

Key Facts:

• The SAF levy will apply to all tickets and cargo services sold from 1 April 2026, with rates varying by travel distance and cabin class.
• Sample charges include S$1 for Bangkok, S$2.80 for Tokyo, S$6.40 for London, and S$10.40 for New York, with the levy shown as a separate line item on tickets.

Background:

Singapore is set to pioneer a new sustainable aviation policy by becoming the first nation to impose a green fuel charge on departing air passengers. The Civil Aviation Authority of Singapore (CAAS) announced that the levy will take effect from 1 October 2026 as part of the country’s broader efforts to reduce carbon emissions in aviation.

According to CAAS, the Sustainable Aviation Fuel (SAF) levy will be applied to all tickets and cargo services sold from 1 April 2026. The charge will vary based on the passenger’s destination and travel cabin, structured across four geographical zones that include Southeast Asia, Northeast Asia, South Asia, Europe, America and others.

Sample rates released by the authority indicate that economy passengers may pay S$1 for flights to Bangkok, S$2.80 for Tokyo, S$6.40 for London, and S$10.40 for New York. Airlines will display the levy as a separate line item on tickets, ensuring transparency for travellers. Passengers transiting through Singapore without originating their journey in the city-state will not be subject to the charge.

The move supports the International Civil Aviation Organization’s goal of making global aviation carbon-neutral by 2050. Singapore reiterated that it aims to support this target in a practical, phased manner.

CAAS director general Han Kok Juan said the levy represents a vital step in making Singapore’s air hub more sustainable while keeping costs manageable. “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,” he noted.

Global talks on greener aviation are ongoing. At the COP30 climate summit, France, Spain and Kenya proposed a £500 charge on business travellers to fund climate efforts, but the International Air Transport Association said the idea was too extreme.

With its new SAF levy, Singapore is stepping forward as a leader in green aviation, aiming to cut emissions while remaining a strong global air hub.

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