CAAS sets January 2027 start for sustainable aviation fuel levy

SAFCo will oversee SAF levy collection and procurement.

The Civil Aviation Authority of Singapore (CAAS) will implement its Sustainable Aviation Fuel (SAF) Levy for all origin-destination passengers and general and business aviation flights departing Singapore from 1 January 2027, with the levy applying to tickets and services sold from 1 October 2026.

The levy will appear as a separate line item in fare breakdowns.

Under the Civil Aviation Authority of Singapore (Amendment) Act 2025, proceeds will be channelled into a statutory SAF Fund to finance the purchase of sustainable aviation fuel (SAF), related environmental attributes (EAs), and associated administrative costs.

The Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a non-profit entity wholly owned by CAAS, has been appointed to collect the levy and manage the procurement, accounting, and allocation of SAF and its environmental attributes.

SAFCo will aggregate demand from the levy and voluntary purchases before procuring SAF.

In August 2026, SAFCo completed its first voluntary SAF procurement trial with nine participants: Boston Consulting Group, Changi Airport Group, DBS Bank, GenZero, Google, OCBC, Temasek, Singapore Airlines and Scoot.

CAAS said the trial validated procurement and accounting processes and demonstrated collaboration between companies and airlines to support aviation decarbonisation.

SAFCo plans to launch a request for proposal for SAF procurement funded by the levy by the end of 2026, with the first batch of fuel expected to be delivered in mid-2027.

Meanwhile, CAAS has deferred the SAF levy for air cargo shipments by one year.

It will apply to services sold from 1 October 2027 for flights departing Singapore from 1 January 2028.

The authority said the delay reflects the greater complexity of cargo operations and will provide more time to develop a levy collection mechanism with industry stakeholders.

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Civil Aviation Authority of Singapore

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