Forum: Green jet fuel levy introduced in pragmatic and balanced manner
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We thank Mr Tan Hao Yang for his Forum letter “ Ensure Changi Airport remains price competitive with green jet fuel levy
The International Civil Aviation Organization (ICAO) has set a long-term aspirational goal of achieving net-zero carbon emissions for international aviation by 2050. Various ICAO members, including the European Union, Japan, South Korea and the UK, have mandated or plan to mandate the use of sustainable aviation fuel (SAF) to work towards this goal. Singapore is not the first or only country to do so, and we have chosen to do so in a pragmatic and balanced manner.
We have set the SAF levy for an economy ticket at between $1 and $10.40, and the equivalent levies for business- and first-class tickets at between $4 and $41.60. This endeavours to keep costs manageable and ensures that our air hub remains price competitive.
The SAF levy will apply for tickets and services sold from April 1, 2026, for flights departing from Singapore from Oct 1, 2026, with the SAF levy amounts remaining unchanged even if SAF prices were to rise later. We have consulted the industry and stakeholders, and do not expect the SAF levy to have a significant effect on air travel demand and the price competitiveness of Changi Airport.
Despite a challenging external operating environment in 2025, Changi Airport is seeing strong growth. Barring unforeseen circumstances, we will surpass 2024 and set a record in air passenger volume in 2025. We will continue to keep a keen eye on cost and ensure that Changi Airport remains price competitive vis-a-vis other airports.
We thank Mr Tan for his support for Changi Airport, a national icon and source of pride for many Singaporeans. We will continue to work with all stakeholders to position our Singapore air hub for growth and even greater heights.
Daniel Ng
Chief Sustainability Officer
Civil Aviation Authority of Singapore
