Singapore to impose world’s first green fuel tax on flights

Singapore will become the first country to charge air passengers a green fuel tax as part of ongoing decarbonisation efforts. The green fuel tax is set to impact flyers in economy and premium cabins but will not come into effect until next year.

From 1 October 2026, the Civil Aviation Authority of Singapore (CAAS) will introduce a sustainable aviation fuel (SAF) tax for travellers departing the country.

Singapore’s green air tax

The tax will apply to all tickets or services sold from 1 April 2026, and charges will vary based on the distance travelled by an air passenger and the cabin of travel. These will be categorised into four geographical bands.

Group one includes Southeast Asia, and group two includes Northeast Asia, South Asia, Australia and Papua New Guinea. Group three comprises Africa, Central and West Asia, Europe, the Middle East, the Pacific Islands and New Zealand. The Americas are included in group four.

For example, economy class passengers travelling to Bangkok, Tokyo, London and New York will pay (in Singapore dollars) $1.00, $2.80, $6.40 and $10.40, respectively.

SAF Levy for Passengers

Mr Han Kok Juan, Director-General of CAAS, has said:

“The introduction of the SAF Levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub. It provides a mechanism for all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub. We need to make a start. We have done so in a measured way, and we are giving industry, businesses and the public time to adjust.”

It’s important to note that the levy will not apply to passengers who are only transiting through Singapore.

This comes after the International Civil Aviation Organization (ICAO) has set a ‘Long-Term Aspirational Goal’ of net zero carbon emissions for international aviation by 2050.

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