Come 2026, travellers flying out from Singapore will face increased airfares as the government imposes a levy on flights departing from the city-state, mandating the use of environmentally sustainable jet fuel.
The levy will contribute to the bulk purchase of sustainable aviation fuel, primarily derived from waste materials, which is three to five times more expensive than conventional fuel.
While specific details are pending, estimates suggest economy class passengers may incur an additional S$3 (US$2.20) to S$16 (US$11.90) for short, medium, and long-haul flights.
Singapore is aiming for sustainable aviation fuel to constitute 1% of jet fuel at its airports by 2026, rising to 3-5% by 2030.
The levy, a first globally, ensures cost certainty, with the amount adjusted based on fuel price and usage targets. The initiative is part of a sustainable air hub blueprint launched by Transport Minister Chee Hong Tat, outlining 12 initiatives to reduce carbon emissions and achieve net-zero domestic and international emissions by 2050.
The Civil Aviation Authority of Singapore (CAAS) estimates the levy will reduce emissions by 4% by 2030. The move aligns with global efforts to reduce aviation emissions, though concerns exist regarding limited supply and high prices of sustainable jet fuel.
