Note that the levy might not be permanent

MITIGATING TRANSITION RISKS UPFRONT

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Introducing the levy helps assure progress towards decarbonisation. From April 2026, the levy will be collected for all flights departing Singapore from October that year, meaning funds will begin accumulating months earlier. This ensures that Singapore can purchase enough SAF to meet its 1 per cent target without drawing on public funds.

more generous baggage allowances.

In absolute terms, these are small amounts: an economy-class levy within Band 1 is just $1, while the highest for a premium cabin flight to the Americas is $41.60.

To put this in context, a business-class return flight to San Francisco in mid-January costs more than $5,300, which would face an additional $41.60 levy. An economy-class return trip to Manila around the same time is about $240, which would face a $1 levy.

The push for net-zero in air transport aligns with efforts on land, which include phasing out cars with traditional internal combustion engines, and at sea, with innovations in the electrification of smaller vessels and the exploration of ammonia-based fuel sources for larger vessels.

The levy comes alongside the establishment of SAFCo, a centralised purchaser of SAF under CAAS. The model mirrors similar Government-led efforts in other parts of the energy system, such as GASCo for natural gas procurement and the Singapore Energy Infrastructure Company to support cross-border electricity imports, and give the state the ability to secure supply where private sector capital may not be forthcoming.