Singapore Implements Sustainable Aviation Fuel Levy as Southeast Asia Expands SAF Production
Singapore will impose a levy of up to $32 on departing flights from October 1 to fund sustainable aviation fuel (SAF). This initiative supports Singapore's SAF production, which includes a major plant and construction of a new facility. Southeast Asia is emerging as a hub for SAF, with Vietnam, Malaysia, and Thailand also advancing their production capabilities. The region aims to produce 8.5 million barrels of SAF per day by 2050, despite challenges due to policy changes in the U.S. affecting global production.
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Singapore will introduce a levy between 75 cents and $32 on flights departing from Changi International Airport starting October 1 to finance sustainable aviation fuel (SAF). The levy varies based on flight distance and cabin class, with the lowest charge for regional economy flights.
Singapore is constructing a next-gen SAF plant, while Thailand, Malaysia, and Vietnam are also enhancing their SAF capabilities. The region could produce 8.5 million barrels of SAF daily by 2050. However, the slowdown in U.S. SAF production growth poses challenges.
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