Singapore to Impose New Levy on Flights to Fund Sustainable Aviation Fuel

Singapore to Impose New Levy on Flights to Fund Sustainable

Singapore will begin charging a new levy on airline tickets later this year to help pay for sustainable aviation fuel, making flights slightly more expensive for travelers using Changi International Airport.

The surcharge will apply to tickets sold after April 1 for flights departing on or after Oct. 1.

Passengers will pay between 1 Singapore dollar (about 75 US cents) and 41.60 Singapore dollars (about $32), depending on how far they travel and which cabin they choose.

Economy travelers flying within Southeast Asia will pay the lowest fee, while premium cabin passengers heading to the Americas will pay the highest.

Cargo flights will also face a levy based on distance and weight. The charge will be clearly listed on tickets and air cargo contracts.

The money raised will support Singapore's use of sustainable aviation fuel, or SAF. This cleaner fuel is often made from used cooking oil or farm waste.

According to US News, Airlines are turning to SAF to lower carbon emissions without changing their current aircraft. Aviation produces about 2.5% of global carbon emissions, and demand for air travel continues to grow.

Daniel Ng, chief sustainability officer at the Civil Aviation Authority of Singapore, said the levy will allow "all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub."

Singapore Expands SAF Capacity

Singapore is already home to the region's largest SAF plant and plans to begin building a next-generation facility this year. The country has supply agreements with major airlines, including Singapore Airlines and JetBlue.

Across Southeast Asia, SAF production is expanding. Thailand opened a new SAF plant in Bangkok in 2025, AP News reported.

Malaysia and Vietnam reached domestic production milestones last year, while Indonesia announced plans to grow its output.

Tat Chuan Goh of Aether Fuels, a Chicago-based company building Singapore's new plant, said, "The industry is just getting started, but we do sense the momentum is clearly building up."

The Association of Southeast Asian Nations estimates the region could produce 8.5 million barrels of SAF per day by 2050 if growth continues.

However, global progress faces challenges. The International Energy Agency says aviation emissions are rising faster than those from any other transport sector.

Originally published on vcpost.com

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Singapore, Airlines