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Singapore Imposes Sustainable Aviation Fuel Levy
New tax aims to boost cleaner fuel use at Southeast Asia's busiest airport
Published on Feb. 16, 2026
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Singapore is introducing a new levy on flights departing from Changi International Airport, with the goal of funding the increased use of sustainable aviation fuel (SAF). The levy will range from 75 cents to $32 per ticket, depending on the flight distance and cabin class. This move comes as Southeast Asia is emerging as a hub for global SAF production, with new facilities and policies launching across the region.
Why it matters
The aviation industry is a significant contributor to global carbon emissions, and the use of SAF is seen as crucial to reducing the industry's environmental impact. Singapore's new levy aims to support the growth of SAF production and usage in the region, which could help the industry meet its goal of net-zero emissions by 2050.
The details
The new levy will apply to flights departing Changi Airport after October 1, 2026. Economy class flights within Southeast Asia will pay the lowest rate of 75 cents, while premium cabin flights to the Americas will pay the highest rate of $32. The levy will also apply to cargo flights, based on distance and weight. The funds raised will go towards supporting Singapore's growing SAF industry, including a new production facility set to begin construction this year.
- The new levy will apply to flights departing Changi Airport after October 1, 2026.
- The levy will be charged on tickets sold after April 1, 2026.
The players
Singapore
The city-state that is home to Southeast Asia's busiest airport, Changi International Airport.
Aether Fuels
A Chicago-based fuel development company that is building a new SAF production facility in Singapore.
Association of Southeast Asian Nations (ASEAN)
The regional intergovernmental organization that estimates the Southeast Asia region could produce 8.5 million barrels of SAF per day by 2050.
What they’re saying
“We can, if managed responsibly, support competitive and scalable SAF production.”
— Aung Soe Moe, Senior officer for air transport, Association of Southeast Asian Nations (wral.com)
“But we do still need quite a bit of government support to have that momentum continue.”
— Kelvin Lee, Leads sustainability in the Asia-Pacific region, International Air Transport Association (wral.com)
What’s next
The new SAF production facility in Singapore is set to begin construction this year, which will further boost the region's sustainable aviation fuel capabilities.
The takeaway
Singapore's new sustainable aviation fuel levy is a significant step in the region's efforts to reduce emissions from the aviation industry. As Southeast Asia emerges as a global hub for SAF production, this policy could serve as a model for other countries looking to support the growth of cleaner fuels in the sector.
