Singapore green fuel levy on travellers ignites funding debate
The HinduSingapore on Monday said travellers would need to bear the cost of the transition toward green jet fuel, announcing plans for a levy that would lift ticket prices on departing flights as the aviation industry searches for a viable funding model. Introduced by Singapore's transport minister at an industry summit on the eve of the Singapore Airshow, the city-state said it aimed for all departing flights to use 1% sustainable aviation fuel from 2026 and planned to raise that to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF. High Costs Singapore's only current SAF producer Neste has the capacity to produce up to 1 million metric tons of the fuel annually at its refinery in the country that started operating last year, a company representative said, more than 10 times the volume required for the target of 1% by 2026. Singapore Airlines Chief Sustainability Officer Lee Wen Fen said, while the industry awaits ramped up SAF production, replacing older planes with efficient modern ones is the most effective option.