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Singapore is set to introduce the world’s first dedicated green fuel tax on air travel, marking a major step in its long-term plan to decarbonise the aviation sector.
The Civil Aviation Authority of Singapore (CAAS) confirmed that from 2026, all passengers departing Singapore will pay a Sustainable Aviation Fuel (SAF) Levy, designed to support the country’s ambitious target of using 1% SAF in its aviation fuel mix next year.
According to CAAS, the levy reflects the volume of sustainable fuel required to meet the target as well as the current premium price of SAF and associated logistical costs. Airlines will be required to show the levy as a separate charge on tickets.
How Much Will Travellers Pay?
The levy is based on flight distance and cabin class, with destinations divided into five geographical bands.
Europe in the Highest Band
European-bound travellers fall under Band 4, alongside Africa, Central and West Asia, the Middle East, Pacific Islands and New Zealand.
- Economy and Premium Economy: S$6.40 (€4.24)
- Business and First Class: S$25.60 (€16.96)
Other Bands
- Band 5 (Americas):
- Economy: S$10.40 (€6.89)
- Premium: S$41.60 (€27.57)
- Band 2 (Northeast & South Asia, Australia, Papua New Guinea):
- Economy: S$3.80 (€2.52)
- Premium: S$11.20 (€7.42)
- Band 1 (Southeast Asia):
- Economy: S$1 (€0.66)
- Premium: S$4 (€2.65)
Passengers simply transiting through Singapore will not be charged. The levy only applies to the first onward flight from Singapore—even when the final destination lies further away. For example, a Singapore–Amsterdam–Paris journey will only incur the levy for the Singapore–Amsterdam segment.
Exemptions apply for certain flights, including training operations and humanitarian missions.
Part of Singapore’s Long-Term Sustainability Strategy
The move follows the release of the Singapore Sustainable Air Hub Blueprint, which outlines the nation’s plan to shrink aviation-related emissions. Singapore aims to cut airport-operation emissions by 20% from 2019 levels by 2030, and to reach net-zero aviation emissions by 2050.
CAAS Director-General Han Hok Juan described the levy as a measured but essential step.
“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,” he said, adding that the phased approach gives airlines, travellers and businesses time to adapt.
With this landmark policy, Singapore becomes the first jurisdiction to attach a dedicated green fuel cost to passenger air travel—potentially setting a precedent for other major aviation hubs.
