On 3 September 2026, the Civil Aviation Authority of Singapore (“CAAS“) announced that it will begin applying the sustainable aviation fuel (“SAF“) levy to all origin-destination passengers and general and business aviation flights departing Singapore from 1 January 2027, for tickets or services sold from 1 October 2026. The SAF levy must be reflected as a separate line item in the fare breakdowns, alongside other taxes and charges.
Managing SAF Environmental Attributes
Under the Civil Aviation Authority of Singapore (Amendment) Act 2025 which was passed in October 2025, proceeds from the SAF levy will be channelled into a statutory SAF Fund to support the procurement of SAF and/or related environmental attributes (“EAs“), and associated administrative activities. To administer the regime, CAAS has appointed the Singapore Sustainable Aviation Fuel Company Ltd. (“SAFCo“), a non-profit company limited by guarantee wholly owned by CAAS, as the designated collection agent for the SAF levy and to oversee the procurement, accounting and allocation of SAF and SAF EAs. For more information on the passage of the Act, please refer to our September 2025 NewsBytes article titled “CAAS (Amendment) Bill Passed to Advance Sustainable Aviation Fuel Policies“.
SAFCo will aggregate the SAF demand arising from levy collections and voluntary SAF purchases before procuring SAF and associated EAs. Under SAFCo’s Framework for SAF Levy Collection, Procurement and EA Management (“Framework“), the EAs associated with SAF will be managed separately from the physical fuel and allocated to eligible users through a transparent, traceable and verifiable process. The Framework is intended to uphold environmental integrity while ensuring compliance with international sustainability requirements, including the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Fuels certification standards.
First Voluntary SAF Procurement Trial Completed
To validate the operational and accounting processes underpinning the Framework, SAFCo successfully completed its first voluntary SAF procurement trial in August 2026. The exercise involved nine participating companies, including Singapore Airlines and Scoot, and demonstrated how airlines and corporations can collaborate to support aviation decarbonisation through the use of SAF EAs.
Building on the trial’s success, SAFCo intends to launch a Request for Proposal for SAF procurement funded through SAF levy collections by the end of 2026, with the first SAF deliveries expected in mid-2027.
Deferment of Cargo SAF Levy by One Year
CAAS has also deferred the implementation of the SAF levy for air cargo shipments by one year. The levy will now apply to cargo services sold from 1 October 2027 for flights departing Singapore from 1 January 2028.
CAAS noted that cargo operations involve a more diverse range of stakeholders, including airlines, air express companies, freight forwarders and shippers, as well as more varied commercial arrangements than passenger operations. Taking into account industry feedback, the deferment will provide additional time for CAAS to work with industry stakeholders to develop a robust SAF levy collection mechanism for the air cargo sector.
Click on the following link for more information:
- CAAS Media Release titled “CAAS to Start Sustainable Aviation Fuel Levy for Origin-Destination Passengers, General and Business Aviation Flights from 1 October 2026 for Flights Departing from 1 January 2027” (available on the CAAS website at www.caas.gov.sg)
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