Singapore’s green levy on flights is a world first. Will others follow?

From October 2026, air travellers from Singapore

will be charged a green levy

– the first ever directly imposed on passengers and cargo to fund the large-scale purchase of sustainable aviation fuel (SAF), ringfenced for decarbonising aviation. The levy will work as an additional charge on flight tickets, or air cargo shipments departing from Singapore. 

It may seem counter-intuitive for a small, open economy that relies heavily on aviation and connectivity to raise flying costs. Wouldn’t this make Singapore less competitive as an air hub?