Bill passed to allow green aviation fuel levy on departing flights

Singapore can now impose a fixed levy on all departing flights after Parliament passed a Bill on Oct 14 to support the use of sustainable aviation fuel by airlines.

- Esther Loi

Sustainable aviation fuel, mostly made from waste materials such as used cooking oil, has been deemed the most practical way to decarbonise the aviation industry as it can be blended with jet fuel and used on existing aircraft and refuelling infrastructure without any costly modifications.

The Bill was passed unanimously. Presenting the Civil Aviation Authority of Singapore (Amendment) Bill for debate, Senior Minister of State for Transport Sun Xueling said the proposed changes will allow the green jet fuel levy to be paid to the CAAS, which will set up a fund to procure and manage such fuel.

Noting that green jet fuel costs about three to four times more than traditional jet fuel, she said Singapore has chosen a "pragmatic and balanced approach" in setting a target for sustainable aviation fuel to constitute 1 per cent of all jet fuel used at Changi Airport and Seletar Airport in 2026.

Singapore will collect the funds needed to procure green jet fuel in an upfront manner through the levy.

Preliminary estimates from the CAAS had suggested that economy-class passengers may incur an additional $3 levy for short-haul flights, $6 for medium-haul flights and $16 for long-haul flights, such as those to Bangkok, Tokyo and London, respectively.