The plan, announced by Mr Chee Hong Tat at the Changi Aviation Summit on the eve of the Singapore Air Show, will see the country aim for a SAF target of 1% from 2026, with a potential of 3% to 3% by 2030, depending on global trends. The plan is to raise it to 5%. and broader availability and adoption of SAF.
The Civil Aviation Authority of Singapore (CAAS), which developed the plan, said: “The use of SAF is an important tool towards decarbonising aviation and will help reduce carbon emissions needed to achieve net zero by 2050.'' It is expected to contribute to approximately 65% of the It said in a statement that it had consulted with industry and other stakeholders.
SAF can be made through synthetic processes or from biological materials such as used cooking oil or wood chips. SAF currently accounts for 0.2% of the jet fuel market.
The aviation industry says this will rise to 65% by 2050, as part of plans to reach “net zero” emissions by then, but it will require an estimated 1.45 trillion to 3.2 trillion billion yen. A capital investment of USD is required.
SAF producers complain that they are unsure whether the fuel they produce will be purchased, and airlines say there is not enough supply at a reasonable price. SAF currently costs up to five times more than traditional jet fuel.
CAAS said it plans to introduce a SAF levy on SAF purchases to provide cost certainty to airlines and travelers. The levy is set at a fixed amount based on the SAF target and the prediction of the SAF price at the time.
It depends on factors such as mileage and passenger class. For example, the levy to support SAF's 1% price increase in 2026 will increase ticket prices for economy class passengers on direct flights from Singapore to Bangkok, Tokyo and London by an estimated 3 Singapore dollars ($2.23) and 6 Singapore dollars. dollar, and could rise by S$6 ($2.23). 16 Singapore dollars each.
Singapore's aviation regulator added that premium class passengers will pay higher taxes.
