Refined Products, Maritime & Shipping, Agriculture, Jet Fuel, Biofuels
September 03, 2026
Singapore defers cargo SAF levy to 2028, plans year-end tender
By Mia Pei
Editor:
HIGHLIGHTS
Fuel levy applies to sales from Oct. 1
First levy-funded SAF batch by mid-2027
Environmental attribute proceeds fund more SAF
Singapore will defer its sustainable aviation fuel levy on air cargo by one year and plans to launch a tender for levy-funded SAF by the end of 2026, with the first batch expected to be delivered and uplifted in mid-2027, the Civil Aviation Authority of Singapore said Sept. 3.
The cargo levy will apply to services sold from Oct. 1, 2027, and will cover flights departing Singapore from Jan. 1, 2028. The cargo levy was previously scheduled to take effect at the same time as the levy on passengers, general aviation and business aviation on Oct. 1, 2026, for flights departing from Jan. 1, 2027.
CAAS said cargo operations involve a wider range of stakeholders, including airlines, express companies, freight forwarders and shippers, as well as a variety of commercial arrangements. Taking industry feedback into account, "the one-year deferment will allow more time for CAAS to work with industry to develop and implement a robust SAF levy collection mechanism for cargo shipments on departing flights," CAAS said.
The air-cargo industry association SAAA@Singapore welcomed the deferment. Its chairman, Gabriel Lam, said the one-year delay would give cargo stakeholders more time to prepare for SAF adoption and to work with CAAS on a levy collection mechanism, while helping companies navigate a challenging trade and business environment.
Under the published rates announced by CAAS in November 2025, cargo levy rates range from S$0.01/kg for Southeast Asian destinations to S$0.15/kg for the Americas.
Economy and premium economy passengers will pay between S$1 and S$10.40 per passenger, while business and first-class passengers will pay between S$4 and S$41.60 per passenger, depending on the destination. Transit passengers are exempt. Charges for general and business aviation range from S$40 to S$6,500 per aircraft, depending on aircraft size and flight distance.
SAF levy for passengers
| Geographical band | Passenger SAF levy (per passenger charge) | |
| Economy cabin (economy + premium economy) | Premium cabin (business + first class) | |
| Band I - Southeast Asia | S$1.00 | S$4.00 |
| Band II - Northeast Asia, South Asia, Australia, Papua New Guinea | S$2.80 | S$11.20 |
| Band III - Africa, Central Asia, West Asia, Europe, the Middle East, Pacific Islands, New Zealand | S$6.40 | S$25.60 |
| Band IV - Americas | S$10.40 | S$41.60 |
SAF levy for general and business aviation flights
| ICAO code letter | Wingspan (in meters) | Aircraft examples | SAF levy (by aircraft) | |||
| Band I | Band II | Band III | Band IV | |||
| A | <15 | Cessna 404 Titan | S$40 | S$110 | S$240 | S$390 |
| B | 15-24 | Bombardier Challenger 600 / Gulfstream G-IV / Embraer ERJ-135 | S$100 | S$280 | S$640 | S$1,040 |
| C | 24-36 | Bombardier Global 6000 / Gulfstream G650 | S$190 | S$530 | S$1,200 | S$1,950 |
| D | 36-52 | A310-200 / B767-300 | S$380 | S$1,050 | S$2,400 | S$3,900 |
| E | 52-65 | A350-900 / B787-9/10 | S$570 | S$1,580 | S$3,600 | S$5,850 |
| F | 65-80 | A380 / B747-8 | S$630 | S$1,750 | S$4,000 | S$6,500 |
Source: CAAS
Procurement, attribute allocation
Levies collected will be directed into a statutory SAF fund and utilized to purchase SAF and related environmental attributes, as well as to cover administrative costs, according to CAAS.
The Singapore Sustainable Aviation Fuel Company, or SAFCo, will serve as the collection agent, aggregating levy-backed demand with voluntary demand before procuring SAF through a competitive process, CAAS said. The company plans to issue a request for proposals by the end of 2026, according to CAAS.
SAFCo will manage environmental attributes separately from the physical fuel, CAAS said. These attributes reflect the difference in lifecycle carbon emissions between SAF and an equivalent volume of conventional jet fuel.
Scope 1 attributes will be allocated to aircraft operators in proportion to their levy contributions, provided they account for at least 0.01% of total levies collected, according to CAAS, which expects the arrangement to cover more than 80 passenger aircraft operators.
SAFCo will retain scope 3 attributes, along with any unallocated Scope 1 attributes, and make them available to organizations seeking to reduce emissions from business travel and air freight, CAAS said. Proceeds from their sale will be recycled into further SAF purchases.
SAFCo said in August that it had awarded Trovio the contract to design, build and operate the Sustainable Aviation Fuel Environmental Attributes Management System, known as SEAMS.
The fuel and associated attributes will comply with sustainability requirements, including certification standards under the International Civil Aviation Organization's Carbon Offsetting and Reduction Scheme for International Aviation, according to CAAS.
SAFCo completed Singapore's first voluntary SAF procurement trial in August, with nine participants, including Singapore Airlines, Scoot, Google, DBS Bank and Temasek.
Platts, part of S&P Global Energy, assessed SAF (HEFA-SPK) FOB Straits at $2,504/mt on Sept. 2, down $15/mt from the day before.
"CAAS has worked closely with airlines and other global industry partners to set up a robust regime for SAF levy collection, procurement and environmental attributes management," CAAS Director-General Han Kok Juan said.
Singapore is targeting a 1% SAF uplift from 2027 and aims to raise this to 3%-5% by 2030, subject to global market developments and fuel availability.
