Singapore Introduces Sustainable Aviation Fuel Levy
Singapore will introduce a sustainable aviation fuel (SAF) levy ranging from $0.75 to $32 per ticket for flights departing Singapore Changi Airport starting October 1, for tickets sold after April 1. The policy aims to scale demand for cleaner aviation fuels derived from feedstocks such as used cooking oil and agricultural waste. As highlighted in the ASEAN SAF 2050 Outlook, ASEAN economies could collectively produce up to 8.5 million barrels per day of SAF by 2050, with regional demand projected to rise sharply from 2030 onward. Singapore already hosts the region’s largest SAF production facility and is expanding capacity through next-generation plants and supply agreements with major international carriers.
Regional peers are also advancing SAF initiatives, positioning Southeast Asia as a future global SAF hub. For U.S. stakeholders, this shift is significant as ASEAN’s expanding production and consumption create demand for advanced refining technologies, engineering services, lifecycle carbon accounting, and project financing. With domestic SAF growth in the U.S. facing policy uncertainty, Southeast Asia offers U.S. technology providers and investors opportunities for supply chain diversification, export growth, and strategic partnerships in scaling sustainable aviation infrastructure.