Singapore will introduce a fixed levy on all departing flights to fund the adoption of sustainable aviation fuel (SAF) and curb carbon emissions, following the passage of a new bill in parliament on Tuesday.
Senior Minister of State for Transport Sun Xueling said during the parliamentary debate that the levy, to be collected by the Civil Aviation Authority of Singapore, will be used to procure and manage SAF for airlines operating out of the city-state.
Under the plan, Singapore aims to raise the use of sustainable aviation fuel to more than 1% by 2026 and further to between 3% and 5% by 2030. Authorities said the initiative is designed to limit the impact on airfares, with costs shared across air transport users.
Earlier estimates indicated that the SAF levy would range from S$3 (US$2.30) to S$16 for passengers travelling on economy class direct flights, depending on the route distance.
Sun added that Singapore will consolidate SAF demand across airlines and handle procurement centrally to negotiate better commercial terms with suppliers.
The International Air Transport Association (IATA) has estimated that sustainable aviation fuel could account for around 65% of the emissions cuts needed for the aviation industry to achieve net zero by 2050. However, global uptake remains low, with SAF expected to make up only 0.7% of aviation fuel this year as air travel continues to expand by about 6%.
Bloomberg
