Travellers departing Singapore to pay SAF levy for flights booked from 1 Oct 2026

The levy, which starts at about S$1 per passenger, will apply to flights departing Singapore from 1 January 2027.

Singapore’s Civil Aviation Authority of Singapore (CAAS) will introduce a Sustainable Aviation Fuel (SAF) Levy for origin-destination passengers and general and business aviation flights from 1 October 2026, which applies to flights departing Singapore from 1 January 2027.

The levy – which will only apply to 'Origin-destination passengers' – will be imposed on tickets or services sold from 1 October 2026 and must be shown as a distinct line item in the fare breakdown, alongside other taxes, and charges.

Under the regime, all SAF Levy collections will be channelled into a statutory SAF Fund to purchase SAF and related environmental attributes (EAs), as well as cover associated administrative costs.

The Singapore Sustainable Aviation Fuel Company (SAFCo), a non-profit company wholly owned by CAAS, will act as the designated collection agent. It will also be responsible for procuring, managing, accounting for and allocating SAF and its associated EAs, the aviation authority said.

SAFCo will aggregate demand from both the SAF Levy and voluntary SAF participation before procuring SAF and related EAs.

The EAs will be managed separately from the physical SAF and allocated to eligible users through a process that CAAS said will be transparent, traceable, and verifiable, while meeting relevant sustainability requirements, including the International Civil Aviation Organisation’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) standards.

The EAs will comprise two components covering Scope 1 and Scope 3 emissions:

• Scope 1 EAs will be allocated to aircraft operators based on their relative contributions to the SAF Levy, provided they meet a minimum allocation threshold of 0.01% of total levy collections. CAAS expects this to cover more than 80 passenger aircraft operators.
• SAFCo will centrally manage Scope 3 EAs, along with any unallocated Scope 1 EAs. These will be made available to organisations seeking to reduce emissions associated with business travel and air freight activities.

Proceeds from the sale of these EAs will be channelled towards the purchase of additional SAF, with the aim of supporting greater uptake of the fuel.

First voluntary SAF procurement trial completed

SAFCo completed its first voluntary SAF procurement trial in August this year, with nine companies and airlines participating: Boston Consulting Group, Changi Airport Group, DBS Bank, GenZero, Google, OCBC, Temasek, Singapore Airlines, and Scoot.

According to CAAS, the trial was intended to validate the operational, commercial and accounting processes for SAF procurement and EA allocation. It also demonstrated how companies and airlines could work together to support aviation decarbonisation through voluntary SAF demand and the use of SAF EAs.

SAFCo plans to launch a request for proposal for SAF procurement using SAF Levy collections by the end of 2026. The procurement will be conducted on a transparent, competitive and cost-effective basis, with the first batch of SAF expected to be delivered and uplifted in mid-2027.

Cargo levy deferred to 2027

Meanwhile, CAAS has said that it will defer the implementation of the SAF Levy for air cargo shipments by one year. It will now apply to services sold from 1 October 2027 for flights departing Singapore from 1 January 2028. The additional year is meant to allow CAAS to work with industry stakeholders to develop and implement a collection mechanism for cargo shipments, given that cargo operations involve a wider range of stakeholders and commercial arrangements than passenger operations.

Han Kok Juan, Director-General, CAAS, said the authority had worked with airlines and global industry partners to establish a regime covering SAF levy collection, procurement and environmental attributes management.

"CAAS seeks to lay the foundation for Singapore to serve as a trusted hub for SAF-related economic activities in the region," he added.

About the SAF Levy

Initially announced in November 2025, the levy aims to accelerate the adoption of greener jet fuel and reduce aviation emissions, marking a significant move towards the nation’s decarbonisation goals. 

All destinations from Singapore have been grouped into four geographical bands:

• I – Southeast Asia
• II – Northeast Asia, South Asia, Australia, Papua New Guinea
• III – Africa, Central and West Asia, Europe, Middle East, Pacific Islands, New Zealand
• IV – Americas

The SAF levy applicable to flights with multiple stops based on the immediate next destination after departing Singapore.

View the full levy details in our previous coverage here. 

Infographic / CAAS