Singapore Will Apply World’s First Green Fuel Tax on Airline Tickets to Promote its Use

Starting April 1, 2026, passengers purchasing tickets for flights departing from Singapore will have to pay an environmental levy intended to fund the purchase of Sustainable Aviation Fuel (SAF). This initiative makes Singapore the first country in the world to impose a direct charge on travelers with the goal of reducing emissions from the aviation sector.

How much will the new levy cost?

The amount of the levy will depend on two factors: the passenger’s travel class and the distance of the journey. Travelers in economy and premium economy class will pay between S$1.00 and S$10.40 (US$0.77 to US$7.98), while those traveling in business or first class will incur a cost four times higher, which can reach up to S$41.60 (US$31.95).

Detail of fees by geographical band and travel class

Geographical BandEconomy / Premium EconomyBusiness / First Class
Band I: Southeast AsiaS$1.00S$4.00
Band II: Northeast Asia, South Asia, Australia, Papua New GuineaS$2.80S$11.20
Band III: Africa, rest of Asia, Europe, Middle East, Pacific Islands, New ZealandS$6.40S$25.60
Band IV: The AmericasS$10.40S$41.60

Passengers transiting through Singapore will be exempt from the payment, while cargo flights will also be subject to a fee, calculated per kilogram transported.

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Objective: Accelerate the adoption of SAF

The funds collected will be allocated to the centralized purchase of SAF, a type of fuel produced from waste oils or agricultural crops. Singapore aims to achieve an SAF adoption rate of between 3% and 5% by 2030, in line with its climate commitments.

Although the aviation sector accounts for only 1.2% of global greenhouse gas emissions—according to data from the European Commission—the sustained growth in demand, the high cost of SAF, and its limited availability remain significant obstacles to decarbonization.

A levy lower than initially expected

Initially, the government had estimated that the surcharge would range from S$3 to S$16. However, the drop in SAF prices allowed for the establishment of lower rates. This decision coincides with the COP30 conference taking place in Brazil, where representatives from nearly 200 countries are debating measures to mitigate climate change.

Singapore, a key aviation hub

The implementation of this levy is particularly significant considering Singapore’s role as a global air hub. Changi Airport is on track to close the year with record figures, surpassing the 68.3 million passengers recorded in 2019.

With this measure, Singapore sets a precedent in the fight against climate change and reinforces its leadership in innovation within the aviation sector.

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