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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 implementing 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 poised to become a hub for global SAF production, with new facilities and policies launching across the region.
Why it matters
The aviation industry is under pressure to reduce its carbon emissions, which contribute significantly to climate change. Singapore's levy is an effort to incentivize the use of cleaner-burning SAF, which can cut emissions by up to 65%. As a major regional aviation hub, Singapore's policy could set an example and spur further SAF adoption across Southeast Asia.
The details
The levy will apply to flights departing Changi Airport after October 1, 2026 and sold after April 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 at $32. Cargo flights will also be subject to the levy, based on distance and weight. The tax will be transparently displayed on tickets and air cargo contracts.
- The new levy will apply to flights departing Changi Airport after October 1, 2026.
- The levy will be applied to tickets sold after April 1, 2026.
The players
Changi International Airport
Singapore's main international airport, which handled a record 70 million passengers in 2025.
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.
International Air Transport Association (IATA)
The leading group of global airlines, which says using SAF could cut about 65% of the aviation industry's emissions.
International Civil Aviation Organization (ICAO)
The UN-backed organization that has set a goal of zero net carbon emissions for the aviation industry 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 (wbal.com)
“But we do still need quite a bit of government support to have that momentum continue.”
— Kelvin Lee, Leads Sustainability in Asia-Pacific Region, International Air Transport Association (wbal.com)
What’s next
Singapore plans to begin construction on a next-generation SAF production facility this year, further expanding the country's role as a regional hub for sustainable aviation fuel.
The takeaway
Singapore's new levy on flights from Changi Airport is a significant step in driving the adoption of sustainable aviation fuel across Southeast Asia, a region poised to become a global leader in SAF production and usage.
