Singapore Introduces World’s First Mandatory Sustainable Aviation Fuel Levy for Departing Flights

Singapore Introduces World’s First Mandatory Sustainable Aviation Fuel Levy for Departing Flights

by  
Gavien Mok  
- November 20, 2025

Singapore will become the first country globally to impose a mandatory Sustainable Aviation Fuel (SAF) levy on all departing passengers, with charges ranging from S$1 to S$41.60 per ticket depending on travel distance and cabin class, the Civil Aviation Authority of Singapore (CAAS) announced on Nov. 10 [1]. The levy will apply to tickets sold from April 1, 2026, for flights departing on or after Oct. 1, 2026.

Tiered Levy Structure

CAAS has grouped destinations into four geographical bands, with corresponding fees for economy and premium cabins. For example, flights to Southeast Asia (Band 1) incur a S$1 levy for economy and S$4 for premium cabins, while long-haul flights to the Americas (Band 4) incur S$10.40 and S$41.60, respectively [1].
Passengers merely transiting through Singapore will not be subject to the levy, and the fee will apply only to the immediate next destination for multi-stop itineraries [1][2].

Funding SAF Procurement

Airlines will collect the levy and display it as a separate line item on tickets. All funds will flow into a national pool used to centrally procure SAF, improving affordability and supply stability across the region [1]. The levy reflects the SAF volume needed to meet Singapore’s 1% SAF usage target in 2026, rising to 3–5% by 2030, as well as updated SAF price estimates, which are now lower than when initial projections were made [1].

A Global First as Aviation Decarbonization Accelerates

This marks the world’s first nationwide green fuel tax on air passengers, a milestone in the sector’s decarbonization efforts [2]. The levy forms part of Singapore’s broader Sustainable Air Hub Blueprint, which aims to cut airport-related emissions by 20% by 2030 and reach net-zero aviation emissions by 2050 [2].
CAAS Director-General Han Kok Juan emphasized that the levy introduces a “manageable” cost while ensuring all aviation stakeholders contribute to a cleaner aviation ecosystem [1].

References

[1] Channel News Asia: Air travellers departing Singapore to pay sustainable aviation fuel levy…
https://www.channelnewsasia.com/singapore/sustainable-aviation-fuel-levy-flights-depart-changi-seletar-airport-caas-5457376

[2] Euronews: Singapore reveals world’s first green fuel tax on flights…
https://www.euronews.com/travel/2025/11/18/singapore-reveals-worlds-first-green-fuel-tax-on-flights-how-much-will-europeans-have-to-p

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