Singapore Starts Charging SAF Levy as EU Exceeds 2025 SAF Target with 2.8% Share

Singapore — As scheduled by the Civil Aviation Authority of Singapore (CAAS), a sustainable aviation fuel (SAF) levy now applies to air tickets sold from 1 October 2026, for flights departing Singapore from 1 January 2027. Elsewhere, the European Union has reported that its 2025 SAF supply exceeded the mandatory target. Together, the two developments mark SAF's shift from trials towards market obligations.

Singapore: a per-passenger levy

The levy had been postponed. Originally set to apply to tickets sold from 1 April 2026, it was pushed back by CAAS because of the impact of the conflict in the Middle East on airlines and passengers. CAAS Director-General Han Kok Juan described the postponement at the time as a "pragmatic pause", while stressing that Singapore remained committed to decarbonising aviation.

Destination band	Economy	Premium (business/first)
I — Southeast Asia	S$1.00	S$4.00
II — Northeast Asia, South Asia, Australia, Papua New Guinea	S$2.80	S$11.20
III — Africa, Central & West Asia, Europe, Middle East, Pacific Islands, New Zealand	S$6.40	S$25.60
IV — Americas	S$10.40	S$41.60

Transit passengers are exempt, as are training and humanitarian flights. Airlines collect the levy at the time of ticket purchase and show it separately; the proceeds go into a SAF fund managed by CAAS. The fund is used by SAFCo—a CAAS-owned company—to centrally purchase SAF and its environmental attributes. Singapore is targeting a 1% SAF share from 2027 and 3–5% by 2030, depending on global developments and SAF availability.

European Union: 2025 target exceeded

The European Union Aviation Safety Agency (EASA) reported that in 2025 fuel suppliers delivered 39.3 million tonnes of aviation fuel at EU airports, of which 1.1 million tonnes, or 2.8%, was SAF—above the 2% mandatory minimum under the ReFuelEU Aviation regulation. SAF volumes jumped almost sixfold from 193,000 tonnes in 2024, and SAF is now available at 121 airports.

"We are pleased to confirm that the SAF mandate under ReFuelEU Aviation has not only been met, but exceeded," said EASA Executive Director Florian Guillermet. Around 80% of that SAF was made from used cooking oil, and 85% of its feedstock came from outside the EU. The next target is a 6% SAF share in 2030.

Opportunities and homework for Indonesia

Both developments are directly relevant to Indonesia. First, Europe's heavy reliance on imported used cooking oil opens an export market for UCO feedstock and UCO-based SAF—in line with Pertamina's move to secure a SAF contract from Cathay Pacific. Second, Singapore's levy model offers an example of how to finance the SAF price gap without burdening the state budget—a question still unanswered in Indonesia's plan for a 1% SAF mandate from 2027.