Singapore Announces Green Fuel Levy for Departing Flights Starting 2026

The levy aims to fund the transition to sustainable aviation fuel, with ticket prices expected to rise based on travel distance and class.

Singapore will impose a levy on flight ticket prices from 2026 to fund the transition towards green jet fuel, aiming for all departing flights to use 1% sustainable aviation fuel (SAF) by 2026, rising to 3-5% by 2030.
The levy will vary based on factors such as flight distance and travel class, with estimates showing an increase in ticket prices for economy class passengers on direct flights from Singapore to Bangkok, Tokyo, and London by S$3, S$6, and S$16 respectively.
The aviation industry faces challenges in decarbonizing, with SAF currently accounting for only 0.2% of the jet fuel market and costing up to five times more than conventional jet fuel.
The initiative is part of Singapore's sustainable air hub blueprint, developed by the Civil Aviation Authority of Singapore (CAAS), aiming to balance economic competitiveness with environmental sustainability.
Adoption of SAF is seen as critical to achieving decarbonization, with the fuel capable of reducing carbon emissions by up to 80% per lifecycle compared to conventional fossil jet fuel.