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.