Singapore Defers SAF Levy and Mandate on Economic Pressures

Singapore's Civil Aviation Authority announced on Wednesday that it is deferring the implementation of a sustainable aviation fuel levy and a related mandate for cleaner fuel use, citing the economic pressures from the ongoing Middle East conflict on airlines and passengers.

The authority, known as CAAS, stated that the levy, originally set to apply to tickets sold starting April 1 for flights departing from October 1, will now take effect for tickets sold from October 1, with the charge applying to flights departing from January 1, 2027. This passenger levy aims to fund the procurement of sustainable aviation fuel, or SAF, a biofuel derived from materials like used cooking oil that produces fewer carbon emissions than conventional jet fuel. The levy will vary based on travel class and distance, with charges as low as S$1 for flights to Southeast Asia and up to S$41.60 for long-haul routes to the Americas. It will apply to all origin-destination passengers, cargo shipments, and general and business aviation flights leaving Singapore.

In addition, CAAS postponed a requirement for airlines to incorporate at least 1 percent SAF in their fuel mix for departing flights. The mandate,...