Singapore Introduces Departure Fee to Fund Sustainable Aviation Fuel

Singapore has passed a new law requiring all departing passengers to pay a “decarbonization fee,” marking a major milestone in the country’s push toward greener air travel. The collected funds will go into a Civil Aviation Authority-managed pool dedicated to supporting the purchase and use of Sustainable Aviation Fuel (SAF), helping airlines offset part of the higher costs of adopting cleaner fuels.

Starting in 2026, all departing flights from Singapore will be required to use at least 1% SAF, with the mandate expected to rise to between 3% and 5% by 2030. Given the current high cost and limited regional supply of sustainable fuels, this fee is designed to create a level playing field for airlines during the energy transition.

Analysts view this as a bold and positive move that sends a clear policy signal and shares the cost of decarbonization more fairly between consumers and the aviation industry. However, experts also caution that this is only a first step. To make low-carbon fuels a lasting part of the energy mix, Singapore must strengthen its domestic supply chain by supporting local and regional biofuel producers.

Without targeted incentives for fuel production, Singapore risks long-term dependence on imported SAF, exposing itself to volatile global prices and potential supply disruptions. Building a resilient, locally integrated SAF ecosystem will be essential for achieving genuine aviation decarbonization.