Singapore Introduces Sustainable Aviation Fuel Levy

New tax aims to boost use of cleaner-burning fuel as Southeast Asia emerges as global production hub

Published on Feb. 16, 2026

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Singapore is implementing the world's first sustainable aviation fuel (SAF) levy, charging passengers between $0.75 and $32 per ticket to fund the city-state's growing use of the cleaner-burning fuel. The move comes as Southeast Asia positions itself as a hub for global SAF production, with new facilities and policies launching across the region, while environmental policy shifts in the U.S. create an opening in the global market.

Why it matters

The aviation industry is a major contributor to global carbon emissions, and the use of sustainable aviation fuel is seen as crucial to slashing emissions without altering current aircraft. Singapore's new levy aims to drive adoption of SAF, which is often made from used cooking oil or agricultural waste, as the region ramps up production capacity.

The details

Singapore's levy will apply to flights departing Changi International Airport after October 1, 2026, with the lowest charge of $0.75 for economy flights within Southeast Asia and the highest of $32 for premium cabin flights to the Americas. The tax will be shown transparently on tickets and air cargo contracts. The move is part of Singapore's efforts to position itself as a hub for sustainable aviation fuel, with the city-state already home to Southeast Asia's largest SAF plant and plans to build a next-generation facility this year.

  • The new levy will apply to flights departing Changi International Airport after October 1, 2026.
  • The levy will be charged on tickets sold after April 1, 2026.

The players

Singapore

The city-state is implementing the world's first sustainable aviation fuel levy and positioning itself as a hub for SAF production in Southeast Asia.

Aether Fuels

The Chicago-based fuel development company is building Singapore's new SAF production facility.

Association of Southeast Asian Nations (ASEAN)

The regional organization 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 says government support is still needed to continue the momentum in SAF production in the Asia-Pacific region.

International Civil Aviation Organization (ICAO)

The UN-backed organization has set a goal of zero net carbon emissions for the aviation industry by 2050, with SAF seen as crucial to achieving this target.

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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 (Breitbart)

“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 (Breitbart)

What’s next

Singapore's new SAF levy is expected to take effect on October 1, 2026, with the first charges appearing on tickets sold after April 1, 2026. The city-state is also moving forward with plans to build a next-generation SAF production facility this year to further boost the region's sustainable fuel capabilities.

The takeaway

Singapore's pioneering sustainable aviation fuel levy demonstrates the growing momentum behind the use of cleaner-burning fuels in the aviation industry across Southeast Asia. As the region positions itself as a global hub for SAF production, the new levy aims to drive adoption and support Singapore's ambitions to be a leader in sustainable air travel.