Singapore Advances SAF Policy with New Aviation Bill

Singapore has introduced the Civil Aviation Authority of Singapore (CAAS) (Amendment) Bill to implement its landmark Sustainable Aviation Fuel (SAF) policies. Introduced on September 22, the bill, if passed, will facilitate a major decarbonization effort in the aviation sector. This new legislation is a crucial step as the nation seeks to establish itself as a leader in sustainable air travel.

Under new legislation, CAAS has been mandated to collect a compulsory SAF levy from all departing flights beginning in 2026. This charge will finance a dedicated SAF fund used specifically to aggregate demand and procure both the clean fuel and its associated Environmental Attributes (EAs). This mechanism is designed to lower costs and provide a streamlined procurement path for airlines.

Under this policy, Singapore will enforce a mandatory 1% SAF blending target on all flights departing the country, commencing in 2026. The goal is a phased increase, with the target potentially rising to 3% to 5% by 2030. Any escalation will depend on positive developments in the global market and the commercial viability and availability of sustainable aviation fuel.

To ensure an efficient and cost-effective shift, the government utilizes CAAS to centralize the management and allocation of the SAF supply. This strategy is essential for the Singapore Sustainable Air Hub Blueprint, directly supporting the aviation sector's overarching goal of achieving net-zero emissions by 2050.

The CAAS Amendment Bill establishing SAF levy plus centralised procurement architecture plus 1 percent 2026 mandatory blending scaling to 3-5 percent by 2030 reflects one of the most substantive aviation-decarbonisation policy packages globally. Aggregated demand and centralised procurement addresses the market-failure that individual-airline SAF procurement typically faces - small purchase volumes generate high per-unit cost.

The Environmental Attributes procurement dimension is analytically important. SAF's climate-benefit value depends on transparent attribute tracking to prevent double-counting and greenwashing; centralised procurement of both fuel and attributes ensures integrity. This architecture provides template that other aviation-hub jurisdictions can adapt.

For airlines operating in Singapore, aircraft manufacturers, SAF producers, fuel-infrastructure operators, financial institutions and their sustainability advisors, Cognitud's climate action, energy transition and market intelligence teams help clients evaluate SAF-levy-and-mandate exposure, structure long-term commercial arrangements aligned with Singapore Sustainable Air Hub priorities, and prepare disclosures aligned with CORSIA, ISSB and jurisdictional aviation-sustainability frameworks.