A Closer Look at Singapore’s 2026 SAF Levy Structure

A Clear Step Toward Lower Carbon Aviation

Singapore has confirmed that a sustainable aviation fuel levy will come into effect from April 2026. This initiative shows a growing international effort to reshape aviation with lower carbon solutions while keeping the transition practical for passengers and operators.

How the Levy Will Be Applied

The levy will be collected by airlines for all flights departing Singapore beginning April 2026. It covers passengers in all travel cabins as well as cargo movements and general and business aviation flights. The Civil Aviation Authority of Singapore has created four regional bands so that the amount collected reflects distance travelled and cabin type.

Band I includes Southeast Asia. Band II covers Northeast Asia South Asia Australia and Papua New Guinea. Band III includes Africa Central and West Asia Europe the Middle East Pacific Islands and New Zealand. Band IV covers the Americas and carries the highest rates.

For economy passengers the levy ranges from one Singapore dollar for Band I to ten point four Singapore dollars for Band IV. Premium cabin rates are higher in each band. The authority noted that these numbers are lower than earlier estimates due to reduced sustainable fuel costs.

Cargo flights follow a similar geographic structure with per kilogram charges set between zero point zero one and zero point one five Singapore dollars.

Exemptions and Use of Funds

Training flights and missions for humanitarian or charitable purposes will not be charged the levy. All collected funds will flow into the SAF Fund which will be used only to buy sustainable aviation fuel or environmental attributes linked to SAF.

Why This Matters

This move highlights a shift toward practical sustainability where every aviation user contributes in a manageable way. Independent sustainability advisors can help industry players prepare for cost planning transparent communication and long term transition strategies.

Conclusion

Singapore’s SAF levy represents a thoughtful and structured start to mainstream use of cleaner aviation fuels. It offers clarity for passengers and operators while supporting steady movement toward a lower carbon global air transport system.

Source