Flights departing from Singapore will be required to use sustainable aviation fuel from 2026, with a 1% SAF uplift target in 2026 and plans to subsequently raise it to 3%-5% by 2030, the Civil Aviation Authority of Singapore said Feb. 19.
"We have consulted key stakeholders and assess that the cost impact of the 1% target is manageable. This will provide an important demand signal to fuel producers and give them the incentive to invest in new SAF production facilities," Singapore's Transport Minister Chee Hong Tat said at the Changi Aviation Summit.
"We will monitor global developments and the wider availability and adoption of SAF in the next few years, before deciding on the SAF target beyond 2026," Chee said. "In making the decision, we will aim to strike a balance between economic competitiveness and environmental sustainability, to achieve our objective of having sustainable growth."
Singapore will also introduce an SAF levy to provide cost certainty to airlines and travelers, which will be set at a "fixed quantum based on the SAF target and projected SAF price", Chee added.
For instance, the levy in 2026 will be set based on the volume of SAF needed to meet its 1% target and the projected SAF price that year.
"Whether we are able to meet, or exceed, our SAF target will be based on how much SAF can be purchased with the SAF levy at the prevailing SAF price. If the supply increases and prices come down, we could go beyond our set target. Conversely, if SAF prices shoot up and exceed projected levels, we would purchase less than our set target," Chee said.
To meet the 1% uplift target in 2026, authorities estimated that air ticket prices for an economy class passenger flying from Singapore to London to pick up by around S$16 ($12), with passengers in premium classes paying higher levies.
Further details on the SAF levy will be announced in 2025, the CAAS said, adding that sufficient lead time will be provided for the industry and travelers before the levy kicks in from 2026.
These initiatives are part of the Singapore Sustainable Air Hub Blueprint launched Feb. 19, which charts out the country's aviation decarbonization plans. The blueprint will be submitted to the International Civil Aviation Organization as Singapore's State Action Plan this month.
Under the Blueprint, CAAS will work with aviation stakeholders to reduce domestic aviation emissions from airport operations by 20% from 2019 levels (404,000 mt) in 2030 and achieve net zero domestic and international aviation emissions by 2050, it added.