Singapore introduces bill to implement SAF levy from 2026

Singapore's Ministry of Transport introduced (22-Sep-2025) the Civil Aviation Authority of Singapore (CAAS) (Amendment) Bill for its first reading in Parliament. The bill proposes legislative amendments to the CAAS Act 2009 to allow for the implementation of sustainable aviation fuel (SAF) policies for air transport in Singapore. If passed, the bill will have the following provisions:

• A SAF Levy payable to CAAS in respect of a flight, or passenger or cargo on a flight, that takes off from an airport in Singapore. The SAF Levy will be introduced in 2026. To provide cost certainty to air transport users, the levy will be set at a fixed quantum based on the volume of SAF needed to achieve the SAF target and a projected SAF premium. If the actual final SAF premium differs from projections, the levy quantum will not change. Instead, the SAF uplift will be adjusted accordingly, resulting in actual volumes that differ from those needed to achieve the SAF target. The SAF Levy quantum will be reviewed from time to time as necessary and implementation details will be announced in due course after the bill is passed;
• A dedicated SAF Fund to receive all SAF levies collected. The fund will be used to procure SAF and SAF environmental attributes (EA), and to cover related administrative costs. It will not form part of CAAS' revenue;
• CAAS, or a central procurement entity established by CAAS, will procure, manage and allocate SAF and SAF EAs. This will enable CAAS to aggregate demand for SAF, achieve economies of scale and provide a cost effective mechanism for SAF purchases. The implementation details will be announced in due course after the bill is passed. [more - original PR]