Airline domain sustainability initiatives

Building a scalable and integrated Sustainable Aviation Fuel (SAF) ecosystem in Singapore

Most aviation emissions come from international flights, which are challenging to abate. SAF helps reduce these emissions.

SAF is a drop-in fuel that can reduce carbon dioxide emissions by up to 80%. It plays a key role in aviation decarbonisation.

IATA expects SAF to contribute around 65% of the emissions reduction needed to achieve net zero by 2050.

CAAS has undertaken several initiatives to build an ecosystem that supports and sustains the use of SAF in Singapore, and to progressively decarbonise airline operations.

National SAF target and SAF Levy

CAAS has set a 1% SAF uplift target which starts in 2027. The goal is to raise the target to 3%-5% by 2030, depending on global developments and SAF availability.

A levy (SAF Levy) will be collected for flights departing Singapore from 1 January 2027. This levy applies to tickets or services sold from 1 October 2026.

The SAF Levy collected will go into a SAF Fund. The Fund procures SAF and SAF Environmental Attributes (EAs), and covers the related administrative costs.

SAF EAs represent the carbon benefits arising from the difference in lifecycle carbon dioxide emissions between SAF and conventional jet fuel.

Applicable SAF Levy amounts

(a) Origin-Destination passengers

The per-passenger levy will vary according to the:

• destination’s geographical band

• cabin class – economy cabins (economy and premium economy) and premium cabins (business and first)

(b) Cargo shipments

The per-kilogramme levy will vary according to the destination’s geographical band

(c) General and business

The per-aircraft levy will vary according to the aircraft size and destinations’ geographical band.

Central SAF procurement

Launched by CAAS in October 2025, the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) will:

• manage the SAF levy collection

• aggregate demand to reap economies of scale when centrally procuring SAF and SAF EAs

Businesses and organisations can use this central procurement process to buy SAF voluntarily.

SAF EAs procured will be:

• registered in a SAF Registry

• allocated to aircraft operators and other companies

These SAF EAs can be used to claim emissions reductions under ICAO’s CORSIA or for sustainability reporting.

SAF production in Singapore and the region

To support the development of a SAF supply ecosystem in Singapore and the region, SAFCo also encourages investments in:

• SAF production

• SAF-related carbon markets

Singapore is well placed to tap the region’s wide availability of potential feedstocks and its existing petrochemical sector.

Airline fleet renewal and operational improvements

Singapore carriers are also doing their part. Efforts include:

• modernising their fleets with newer, more fuel-efficient aircraft that reduce emissions

• improving operations to reduce fuel burn through weight reduction initiatives and reduced use of aircraft auxiliary power units on the ground

• optimising flight plans and flight management for in-flight fuel savings, including improving airspace efficiency, identifying more efficient routes, and using data analytics and digital solutions

Contact information

Sustainability Office
Contact us using the Enquiries & Feedback Form.