S'pore's green jet-fuel levy roll-out could boost production growth: IATA

The roll-out of the green jet fuel levy for passengers flying out of Singapore will be closely watched to see if it can effectively stimulate production of the fuel, said the International Air Transport Association's (IATA) chief Willie Walsh.

- Isabelle Liew

He said that while he instinctively does not like levies, he is optimistic that Singapore's approach could result in the desired outcome of stimulating production of sustainable aviation fuel (SAF).

The airline industry body is also watching to see if such a model can be replicated in other parts of the world, Mr Walsh said during IATA's global media day in Geneva, Switzerland, on Dec 9. "I think we're all looking to see what happens in Singapore because it would be great if it proved to be an effective model for stimulating the growth of production. So I remain optimistic that we will see a positive outcome from the levy," he said.

Passengers flying out of Singapore from October 2026 will pay a levy of between $1 and $41.60 that will go towards the purchase of SAF, which is typically made from waste materials such as used cooking oil and animal fat and can cost two to five times more than traditional jet fuel.

The levy will apply to tickets sold from April 1, 2026, for flights departing Singapore from Oct 1 that year.