Singapore Imposes SAF Levy to Boost Sustainable Aviation Fuel

Singapore, home to Southeast Asia’s busiest airport, will introduce a new levy on flights starting October 1 to fund the production of sustainable aviation fuel (SAF). Tickets sold from April 1 onwards will include the charge, which ranges from 75 cents to $32 depending on distance and cabin class.

The levy will apply to passengers and cargo, with charges based on travel distance and cabin or cargo weight. Economy flights within Southeast Asia will incur the lowest fee of 1 Singapore dollar (about 75 U.S. cents), while premium flights to the Americas will pay the highest, 41.60 Singapore dollars (about $32). The tax will be transparently displayed on tickets and air cargo contracts.

Daniel Ng, Chief Sustainability Officer at the Civil Aviation Authority of Singapore, said the levy allows all aviation users to contribute to sustainability at a manageable cost, supporting the city-state’s goal of cleaner air travel.

Southeast Asia Becomes SAF Hub

The region is rapidly expanding SAF production. Singapore currently hosts the largest SAF plant in Southeast Asia and is building a next-generation facility with supply agreements for major airlines, including JetBlue and Singapore Airlines. Thailand opened a SAF plant in Bangkok in 2025, while Malaysia and Vietnam achieved domestic production milestones last year. Indonesia also plans to expand fuel production.

Tat Chuan Goh of Aether Fuels, which is developing Singapore’s new plant, said, “The momentum for SAF production in Southeast Asia is clearly building.”

Vietnam supplied domestic SAF blends to VietJet Air in 2025, and Malaysia made first deliveries to Malaysia Airlines and European customers. The Philippines is also easing regulations to attract SAF developers. ASEAN estimates that the region could produce up to 8.5 million barrels of SAF per day by 2050.

Kelvin Lee of the International Air Transport Association (IATA) emphasized the need for continued government support to sustain SAF growth.

Global Challenges for SAF Production

Aviation accounts for around 2.5% of global carbon emissions, which are rising faster than any other transport sector. SAF can reduce emissions by approximately 65%, helping airlines meet the UN-backed goal of zero net carbon emissions by 2050.

However, global SAF growth faces uncertainty due to U.S. policy rollbacks under former President Donald Trump, slowing production that had increased under President Joe Biden. Preeti Jain of IATA noted that while U.S. incentives have not completely disappeared, a period of uncertainty remains.