Singapore Sustainable Aviation Fuel Levy

Passenger and aviation-service start dates

The Civil Aviation Authority of Singapore (CAAS) will start the Sustainable Aviation Fuel (SAF) Levy for all origin-destination passengers and for general and business aviation flights departing Singapore from 1 January 2027. The levy applies to tickets or services sold from 1 October 2026, and must appear as a distinct line item in the fare breakdown, like other taxes and charges (CAAS, 3 September 2026).

Fund and collection structure

Under the Civil Aviation Authority of Singapore (Amendment) Act 2025, SAF Levies collected will flow into a statutory SAF Fund. The fund is used to purchase sustainable aviation fuel and related environmental attributes, and to cover associated administrative costs. CAAS says the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a non-profit company limited by guarantee wholly owned by CAAS, is the designated collection agent and will procure, manage, account for and allocate SAF and associated environmental attributes (CAAS, 3 September 2026).

Environmental-attribute allocation

SAFCo will aggregate demand arising from the levy and voluntary demand, then procure SAF and associated environmental attributes under a transparent, traceable and verifiable framework. CAAS describes two components: Scope 1 attributes allocated to aircraft operators, and Scope 3 attributes centrally managed by SAFCo and made available to organisations seeking to reduce emissions associated with business travel and air freight. Scope 1 allocations are proportional to operators' relative levy contributions, subject to a minimum allocation threshold of 0.01% of total SAF Levies collected; CAAS expects this to cover more than 80 passenger aircraft operators (CAAS, 3 September 2026).

Cargo deferment and implementation boundary

CAAS deferred the SAF Levy for air-cargo shipments by one year. For cargo services, the levy is scheduled to apply to services sold from 1 October 2027 for flights departing Singapore from 1 January 2028. CAAS said the deferment allows more time to develop a levy-collection mechanism for cargo operations, which involve airlines, express operators, freight forwarders, shippers and varied commercial arrangements (CAAS, 3 September 2026).

First voluntary trial

In August 2026, SAFCo and CAAS completed a first voluntary SAF procurement trial involving nine companies, including Singapore Airlines and Scoot. SAFCo planned to issue a request for proposals for SAF procurement from levy proceeds by the end of 2026, with the first batch expected to be delivered and uplifted in mid-2027. These are implementation plans reported by CAAS, not evidence that all levy-funded SAF had already been delivered as at the 3 September 2026 release (CAAS, 3 September 2026).