PAP passes Bill to allow Singapore to impose green aviation fuel levy on departing flights

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Parliament passes Bill to allow Singapore to impose green aviation fuel levy on departing flights​

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Funds from the green jet fuel will be paid to CAAS, and a fund will be set up to procure the fuel.

ST PHOTO: KUA CHEE SIONG

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Singapore Parliament

Summary

• Singapore passed a Bill on October 14 to impose a levy on departing flights to facilitate sustainable aviation fuel usage.
• The levy aims for 1 per cent green jet fuel usage at Changi and Seletar Airports by 2026, costing economy passengers an estimated $3 to $16 more.
• The levy will be paid by aircraft operators, who may pass the cost to passengers, but transit passengers are exempt to maintain Changi's competitiveness.

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Published Oct 14, 2025, 10:20 PM
Updated Oct 14, 2025, 10:50 PM

SINGAPORE – Singapore can now impose a fixed levy on all departing flights after Parliament passed a Bill on Oct 14 to support the use of sustainable aviation fuel by airlines.

Sustainable aviation fuel, mostly made from waste materials such as used cooking oil, has been deemed the

most practical way to decarbonise

the aviation industry as it can be blended with jet fuel and used on existing aircraft and refuelling infrastructure without any costly modifications.


The Bill was passed unanimously.


Presenting the Civil Aviation Authority of Singapore (Amendment) Bill for debate, Senior Minister of State for Transport Sun Xueling said the proposed changes will allow the green jet fuel levy to be paid to the CAAS, which will set up a fund to procure and manage such fuel.

Noting that green jet fuel costs about three to four times more than traditional jet fuel, she said Singapore has chosen a “pragmatic and balanced approach” in setting a target for sustainable aviation fuel to constitute 1 per cent of all jet fuel used at Changi Airport and Seletar Airport in 2026.

Singapore will collect the funds needed to procure green jet fuel in an upfront manner through the levy.



Preliminary estimates from the CAAS

had suggested that economy-class passengers may incur an additional $3 levy for short-haul flights, $6 for medium-haul flights and $16 for long-haul flights, such as those to Bangkok, Tokyo and London, respectively.

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MPs such as Ms Poh Li San (Sembawang West) and Mr Sharael Taha (Pasir Ris-Changi GRC) asked about the impact of the levy, and reasons for passing the costs on to passengers through higher air ticket prices.

More specifically, Ms Poh asked why the cost burden is to be borne solely by consumers, instead of airlines.


Responding, Ms Sun said the sustainable aviation fuel levy will be paid by different parties, including aircraft operators. It is calculated based on the ultimate user of the air transport service, she added, so aircraft operators will be allowed to pass the levy on to end users such as passengers or shippers.

The amount of the green jet fuel levy that each end user has to pay will be displayed transparently, she said.

Certain flights will be exempted from the levy, such as those used for flight training and for charitable or humanitarian purposes, she added.

Addressing a question by Mr Yip Hon Weng (Yio Chu Kang), Ms Sun said passengers transiting or transferring through Singapore will not need to pay the sustainable aviation fuel levy.

She acknowledged that transit and transfer passengers are a critical part of air traffic through Changi Airport.

Although they do not start or end their journeys in Singapore, they enhance the nation’s connectivity by supporting a broader network of destinations and higher flight frequencies, she said.

Ms Sun added that the Government plans to ensure that Changi Airport remains competitive enough for these passengers to continue choosing to transit or transfer through Singapore, and hence will not impose the levy on them.

Several MPs, including Ms Gho Sze Kee (Mountbatten) and Mr Yip, asked about how the levy could potentially affect Changi Airport’s competitiveness as a global air hub.

More on this topic​

Flying greener will come at a price, industry players warn​

Singapore launches centre to drive sustainable aviation in Asia-Pacific​

Responding, Ms Sun said airlines and passengers fly through Changi Airport for various reasons, including safety, network and connectivity.

The Government will keep a close watch on Changi Airport’s charges and costs, she said, adding that it has calibrated its approach to adopting green jet fuel with “safeguards” to maintain the air hub’s competitiveness.

Ms Sun said the Government has consulted the industry and assessed that starting with a 1 per cent green jet fuel adoption target is “manageable”, and will not increase air ticket prices significantly.

Under this model, the total amount spent on sustainable aviation fuel each year will be pre-determined based on the usage target set and the projected cost of the fuel, she noted.

“We can decide how much cost we want to bear, and provide cost certainty for airlines and passengers,” said Ms Sun, who assured the MPs that Changi’s competitiveness would not be adversely impacted.

Conversely, simply mandating the use of sustainable aviation fuel across the board would impose unpredictable and unsustainable costs on airlines and passengers, she added.

Responding to Mr Dennis Tan (Hougang) on possible greenwashing due to the use of certain feedstock in sustainable aviation fuel that may create external pollutants, Ms Sun said the green jet fuel procured will comply with the requirements set out by the International Civil Aviation Organisation.

She added that the Economic Development Board has been in discussions with existing energy firms on retrofitting current refinery units, while research institutes are investing in technology that can advance biofuel production.

More on this topic​

What you need to know about sustainable aviation fuel​

Passengers and politicians are giving up on greener air travel​

Esther Loi is a journalist at The Straits Times, where she covers transport issues.

See more on​

Singapore ParliamentAviation/Aerospace sectorCAAS/Civil Aviation Authority of SingaporeMinistry of TransportSustainability



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MDDI (P) 048/10/2024. Published by SPH Media Limited, Co. Regn. No.202120748H. Copyright © 2025 SPH Media Limited. All rights reserved.

 

[syed putra]

Instead if collecting cardboard, singkies can add income collecting waste cooking oil.

 

[zhiwei]

Knnbccb... fueling price increases again. This fuckup PAP must be voted out!

 

[BigBlackCock]

Can’t wait to pay more for the same tiny seat again!

 

[Iceberg]

isn't that carbon tax?

If the plane don't refuel in Singapore, how to tax the aviation fuel?

 

[laksaboy]

Still persisting with the anti-carbon cult. PAP regime is balls deep invested into Davos ideology, are you surprised?

 

[ftan42]

Singapore's jet fuel imports primarily come from Asia, with India serving as a key supplier. India purchases fuel from Russia at significant discounts.

 

[batman1]

Singapore's jet fuel imports primarily come from Asia, with India serving as a key supplier. India purchases fuel from Russia at significant discounts.

In short,Don't benefit low ses sinkees.555