Agriculture, Energy Transition, Refined Products, Biofuel, Renewables, Jet Fuel
October 16, 2025
Singapore passes SAF bill with levies on international flights
HIGHLIGHTS
Govt to establish dedicated fund for procuring SAF
Levy to range from $2.32 to $12.35 per departing seat
Mandate of 1% SAF blend from 2026
Singapore passed the Civil Aviation Authority (Amendment) Bill Oct. 14, empowering the Civil Aviation Authority of Singapore to collect a levy on departing flights and has established a dedicated fund for supporting its sustainable aviation fuel program.
Singapore is taking a novel approach to introducing SAF through a levy rather than a mandate. Its intent is to fix the cost of using greener jet fuel and manage costs by procuring SAF centrally to reap economies of scale, Member of Parliament Foo Cexiang said during the second reading of the bill Oct. 14.
In 2024, Singapore announced the levy and a mandate of 1% SAF blend on all outbound flights beginning from 2026.
The government is looking to increase the SAF blending target to 3%-5% by 2030.
According to the law, CAAS will also set up a dedicated SAF fund to receive the levies collected and use them to buy SAF and SAF environmental attributes.
The levy is expected to range from S$3 to S$16 ($2.32 to $12.35), depending on the flight distance and travel class.
Transit and transfer passengers at Changi Airport will be exempt to preserve the city-state's competitiveness as an aviation hub. Flights for training, humanitarian or charitable purposes will also be excluded, the law stipulates.
Under a fixed-cost envelope model, the annual SAF expenditure will be predetermined based on projected price premiums and blending targets. Levies will be collected upfront and SAF volumes will be adjusted to match actual market prices, ensuring cost certainty for airlines and passengers, Senior Minister of State for Transport, Sun Xueling, said.
The government opted for a "pragmatic and balanced approach" to SAF adoption, Xueling said, adding that recurring subsidies are unsustainable.
Singapore will aggregate demand across carriers and centrally manage procurement, the bill showed.
Platts, part of S&P Global Commodity Insights, assessed the price of SAF (HEFA-SPK) FOB Straits at $2,610.50/mt Oct. 15, down 0.8% day over day.
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