Singapore will become the first country to impose a green fuel tax on air passengers, as part of its decarbonisation efforts. The Civil Aviation Authority of Singapore (CAAS) will introduce a sustainable aviation fuel (SAF) charge for travellers departing the country from 1 October 2026.
The levy will apply to all tickets or services sold from 1 April 2026, including cargo shipments and business flights. Charges will vary based on distance travelled and cabin class, categorised into four geographical bands. For example, economy class passengers will pay S$1 (58p) for flights to Bangkok, S$2.80 (£1.65) to Tokyo, S$6.40 (£3.75) to London, and S$10.40 (£6) to New York.
The fee will be shown as a distinct line item on air tickets. It will not apply to passengers transiting through Singapore. The International Civil Aviation Organization (ICAO) has set a net-zero carbon emissions target for international aviation by 2050, and Singapore said it is committed to working towards that goal in a practical manner.
Mr Han Kok Juan, director general of CAAS, said: “The introduction of the SAF Levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub. It provides a mechanism for all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub.”
The announcement follows a proposal at the Cop30 climate summit for a £500 levy on business travellers, which was dismissed by the International Air Transport Association as “crazy”.
