Starting January 2027, air travellers departing Singapore will pay a sustainable aviation fuel (SAF) levy based on tickets bought from October 2026. However, the SAF levy for air cargo shipments has been deferred until 2028 to allow more time for industry collaboration on collection processes.
- SAF levy for travellers begins January 2027
- Air cargo levy deferred to January 2028
- Funds support sustainable aviation fuel purchases
What happened
Singapore's Civil Aviation Authority (CAAS) announced a staggered rollout of a sustainable aviation fuel levy. Passengers who purchase tickets from October 1, 2026, for flights departing from January 1, 2027, will pay the SAF levy as a separate item in their fare. The charges will range from S$1 to S$41.60 depending on destination and class.
However, the SAF levy for air cargo shipments has been postponed by a year. Following industry feedback, CAAS will now implement the levy for cargo services sold from October 1, 2027, with flights departing from January 1, 2028. This delay provides time to develop a robust collection mechanism due to the complexity and diversity of the cargo sector.
Why it feels good
The SAF levy supports environmental efforts by helping reduce carbon emissions from aviation. Sustainable aviation fuel is made from organic or waste-derived materials instead of fossil fuels, reducing emissions by up to 80 percent. Funding from the levy will be channeled into purchasing SAF and its environmental attributes, advancing greener flying practices.
Singapore aims to establish a trustworthy hub for sustainable aviation fuel activities in the region. The move reflects a commitment to industrial collaboration, environmental responsibility, and future-forward infrastructure. It also aligns with international initiatives for carbon offsetting like ICAO’s CORSIA program.
What to enjoy or watch next
Travellers departing Singapore from 2027 can expect the SAF levy to be clearly itemized on their tickets, making the support for sustainable aviation transparent. Meanwhile, the aviation industry will continue working with CAAS and SAFCo, the non-profit managing levy collections and fuel procurement, to streamline the upcoming cargo levy system.
Looking ahead, following the successful implementation and refinement of the SAF levy, Singapore may further bolster its reputation as a leader in clean aviation technology and environmental stewardship in Asia, encouraging other countries and airlines to adopt similar measures.