CAAS Launches the Singapore Sustainable Air Hub Blueprint

The Blueprint, which addresses the three domains of Airport, Airlines and Air Traffic Management (ATM), adopts a balanced approach to the long term, sustainable growth of Singapore’s aviation sector, taking into account the need for environmental sustainability while ensuring that the Singapore air hub remains competitive.

A highlight was the announcement to kickstart Sustainable Aviation Fuel (SAF) adoption in Singapore. Starting from 2026, flights departing Singapore will be required to use SAF. An initial 1% SAF target would be set, to encourage investment in SAF production and develop an ecosystem for more resilient and affordable supply. This SAF target goal would be raised to 3 – 5% by 2030, subject to global developments and the wider availability and adoption of SAF.

To meet the uplift target, CAAS will also be implementing a SAF levy for SAF purchases. Since the SAF supply market is still emerging and SAF prices can fluctuate, a fixed cost envelope method will be implemented to offer cost predictability for airlines and passengers. The levy amount will be predetermined based on the SAF target, estimated SAF price at that point in time.

The levy was also be adjusted based on travel distance and class. For instance, the estimated levy to support a 1% SAF increase in 2026 may raise ticket prices by approximately S$3, S$6, and S$16 for economy class passengers on direct flights from Singapore to Bangkok, Tokyo, and London respectively. Passengers travelling in the Premium class will incur higher levies.

When explaining the policy considerations at his breakfast chat at Singapore Airshow on the next day, CAAS Director-General, Mr Han Kok Juan, noted that this was not a “SAF mandate” as the levy on passengers was fixed and the actual SAF uplifted would vary according to the price of SAF. The levy would go towards financing the aggregated central procurement of SAF by CAAS.

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