On 22 September 2025, the Ministry of Transport (MOT) introduced the Civil Aviation Authority of Singapore (“CAAS“) (Amendment) Bill (“Amendment Bill“) for its First Reading in Parliament to advance and allow for the implementation of sustainable fuel policies in three key areas:
- empower CAAS to collect a Sustainable Aviation Fuel (“SAF“) Levy;
- establish a SAF Fund; and
- procure, manage, and allocate SAF and SAF environmental attributes (“EAs“).
The Amendment Bill aligns with the Singapore Sustainable Air Hub Blueprint (“Blueprint“) (introduced in February 2004) that mandates all flights departing Singapore to use SAF from 2026, starting at 1% with a goal to reach 3-5% by 2030.
Under the Blueprint, CAAS will also work with aviation stakeholders to reduce domestic aviation emissions from airport operations by 20% from 2019 levels (404ktCO2e) in 2030 and achieve net zero domestic and international aviation emissions by 2050. It outlines 12 initiatives and five enablers across airport, airline, and air traffic domains. SAF is central to the plan, and is expected to deliver 65% of required carbon reductions.
Summary of Key Amendments
- SAF Levy to be implemented in 2026
- To provide cost certainty to air transport users, the SAF levy will be set at a fixed quantum based on the SAF volume needed to achieve the SAF target and a projected premium (which will be the difference between the price of SAF and the price of conventional jet fuel). If the actual final SAF premium differs from projections, the SAF Levy will not fluctuate with actual SAF prices; instead, the SAF uplift will be adjusted.
- The SAF Levy quantum and implementation details will be announced in due course after the Bill is passed. The SAF Levy quantum will be reviewed from time to time as necessary.
- SAF Fund
- The SAF Fund is a dedicated fund to receive SAF levies. It will be used for SAF and SAF EAs procurement and related administrative costs, and will be separate from CAAS revenue.
- Procurement Mechanism
- CAAS or an appointed central procurement entity will manage SAF and SAF EAs to achieve economies of scale.
The Amendment Bill was presented for Second Reading and passed in Parliament on 14 October 2025.
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