Singapore Imposes Levy on Flights to Fund Sustainable Aviation Fuel

• Singapore introduces a levy on flights starting this year, ranging from 75 cents to $32 per ticket, to fund Sustainable Aviation Fuel (SAF).
• The tax will support Singapore's adoption of cleaner-burning fuel, typically derived from used cooking oil or agricultural waste, to reduce aviation emissions.
• Southeast Asia is emerging as a hub for global SAF production, with Singapore hosting the region's largest SAF plant and planning a new facility.
• The levy applies to flights departing after October 1 and sold after April 1 from Changi International Airport, with surcharges based on trip and cabin class.
• Despite a slowdown in global SAF production due to US policy changes, the industry sees growing momentum, especially in Southeast Asia with its abundant fuel ingredients.