Singapore is set to mandate the use of sustainable aviation fuel (SAF) for all departing flights starting in 2026, according to the country’s transport minister. This move is part of its commitment to the global aviation industry’s efforts to switch to greener fuel.
The initiative, revealed by Chee Hong Tat during the Changi Aviation Summit just before the Singapore Airshow, sets a goal for Singapore to achieve a 1% use of sustainable aviation fuel (SAF) by 2026, with plans to raise it to 3-5% by 2030.
This escalation is dependent on international trends and the broader accessibility and uptake of SAF.
“The use of SAF is a critical pathway for the decarbonization of aviation and is expected to contribute around 65% of the carbon emission reduction needed to achieve net zero by 2050,” stated the Civil Aviation Authority of Singapore (CAAS), which developed the strategy in collaboration with industry partners and other stakeholders.
SAF is produced either through synthetic methods or from organic materials such as leftover cooking oil or wood scraps. Currently, SAF comprises only 0.2% of the global jet fuel market.
According to aviation sector forecasts, the share of SAF is expected to surge to 65% by 2050 as part of a strategy to achieve net-zero emissions by that year. However, this ambition is estimated to require an investment ranging from $1.45 trillion to $3.2 trillion.
SAF manufacturers have voiced concerns over the unpredictability of fuel purchases, while airlines are challenged by the inadequate supply and high cost of SAF, which is currently up to five times more expensive than conventional jet fuel.
To address these issues, CAAS has announced plans to implement a SAF levy to ensure pricing stability for airlines and passengers. This fixed-rate levy will be determined by the SAF usage goal and the anticipated price of SAF at that time.
The levy amount will be adjusted based on various factors, including the flight distance and the travel class.
For instance, to support a 1% SAF goal in 2026, the ticket price for an economy class flight from Singapore to Bangkok, Tokyo, and London might see an increase of approximately S$3 ($2.23), S$6, and S$16, respectively.
Travellers flying in premium classes will face higher levies, as noted by Singapore’s aviation authority.
