Singapore is set to implement a groundbreaking initiative requiring all flights departing the country to utilize sustainable aviation fuel (SAF) beginning in 2026, announced Transport Minister Chee Hong Tat on Monday. The move aligns with global efforts within the aviation industry to transition to more environmentally friendly fuel alternatives.
Speaking at the Changi Aviation Summit on the eve of the Singapore Airshow, Minister Chee outlined the country's ambitious targets, aiming for a 1% SAF usage mandate from 2026, with plans to increase this to 3-5% by 2030, contingent upon global developments and the enhanced availability and adoption of SAF.
“The use of SAF is a critical pathway for the decarbonisation 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 crafted the plan in collaboration with industry stakeholders.
SAF can be produced through synthetic processes or derived from biological materials such as used cooking oil or wood chips. Currently, SAF constitutes a mere 0.2% of the jet fuel market, but the industry anticipates this figure to surge to 65% by 2050 as part of efforts to attain net-zero emissions. However, this transition demands substantial capital investment estimated between $1.45 trillion to $3.2 trillion.
Despite the industry's enthusiasm for SAF, producers face uncertainty regarding the demand for their product, while airlines lament the inadequate supply at competitive prices. Currently, SAF costs up to five times more than traditional jet fuel.
To address these challenges, CAAS intends to introduce a SAF levy for SAF purchases to provide airlines and passengers with cost certainty. The levy will be determined based on the SAF target and projected SAF price, varying according to factors such as travel distance and class.
For instance, the levy to support a 1% SAF uplift in 2026 could raise ticket prices by approximately S$3 ($2.23) for an economy class passenger on a direct flight from Singapore to Bangkok, S$6 to Tokyo, and S$16 to London. Premium class passengers will incur higher levies, clarified Singapore's aviation regulator.
