Singapore is set to introduce a new green fuel levy for all air travelers departing the country, marking a landmark moment in global aviation sustainability efforts. Beginning next year, passengers flying out of Changi Airport will pay between S$1 and S$41.60 (up to US$31.95), depending on their travel class and destination.
As one of the world’s most important aviation hubs, Singapore’s move is expected to draw global attention and potentially influence other major markets.
The levy will apply to tickets sold from April 1 for flights departing as of October 1. Economy and premium economy travelers will see only modest increases – around S$1 for flights within Southeast Asia and S$10.40 for long-haul routes to the Americas.
Business and first class passengers, however, will pay roughly four times more, reflecting their larger per-passenger emissions footprint. Notably, transit passengers will not be subject to the new fee, ensuring Singapore’s competitiveness as a connecting hub remains intact. Cargo flights will also face a levy, calculated on a per-kilogram basis.
All funds collected through this initiative will go toward centralized purchases of sustainable aviation fuel (SAF), a key part of Singapore’s strategy to support greener air travel. SAF, typically produced from waste oils, agricultural byproducts, or other renewable feedstocks, remains significantly more expensive than traditional jet fuel.
By pooling funds and coordinating procurement, Singapore aims to stabilize costs and encourage broader adoption. The country has set a target to achieve a 3 to 5 percent SAF blend by 2030 – a goal aligned with international carbon-reduction commitments.
While aviation represents just 1.2 percent of global greenhouse gas emissions, demand for air travel continues to rise, placing pressure on governments and airlines to develop cleaner alternatives. Despite doubling its output last year, SAF accounts for only about 0.3 percent of global jet fuel supply, according to industry estimates.
High production costs, sourcing challenges, and scalability concerns remain major hurdles. Singapore’s green levy arrives at a key moment, coinciding with climate negotiations at COP30 in Brazil, where aviation sustainability is a central topic.
For travelers, the new duty may come as a surprise, though the final rates are lower than originally anticipated. Earlier projections suggested levies between S$3 and S$16, but a recent decline in SAF prices allowed authorities to adjust figures downward. The announcement also comes as Changi Airport is expected to reach record passenger numbers, surpassing its pre-pandemic peak of 68.3 million travelers in 2019.
Travel industry observers say the levy represents a pivotal shift: passengers will now directly contribute to the cost of transitioning toward greener skies. Whether other major aviation markets will adopt similar models remains to be seen, but Singapore’s decision underscores a growing global push toward sustainable travel practices.