CAAS Introduces (Amendment) Bill to Pave Way for the Implementation of SAF

As part of the Singapore Sustainable Air Hub Blueprint announced back in February 2024, the Ministry of Transport (MOT) recently presented the Civil Aviation Authority of Singapore (CAAS) (Amendment) Bill for its First Reading in Parliament on 22 September 2025. The Bill aims to amend the Civil Aviation Authority of Singapore Act 2009 to implement Sustainable Aviation Fuel (SAF) policies for air transport in Singapore. If approved, it will enable CAAS to collect a SAF Levy, establish a SAF Fund, and manage the procurement and allocation of SAF and SAF environmental attributes.

This initiative aligns with the national plan that mandates all flights departing from Singapore to utilise SAF starting in 2026. With an initial SAF target of 1% to encourage investment in SAF production and foster a more robust and cost-effective supply ecosystem, the aim is to elevate the SAF target from the initial 1% in 2026 to between 3% and 5% by 2030, depending on global developments and the wider SAF availability.

The CAAS (Amendment) Bill highlights three key provisions:

• Introduction of a SAF Levy
  A SAF levy will be imposed on departing flights from Singapore—based on the flight, passenger, or cargo. Starting in 2026, the levy, payable to CASS, will be set at a fixed amount, determined by a volume of SAF needed to achieve the SAF target and a projected SAF premium. If actual SAF prices differ, the amount of SAF uplifted will be adjusted accordingly, not the levy amount. The SAF Levy quantum will be reviewed from time to time as necessary.

• Establishment of a SAF Fund
  All SAF levy collections will go into a dedicated SAF Fund, separate from CAAS’ revenue. The Fund will be used to purchase SAF and SAF EAs, and to cover associated administrative expenses.

• Centralised SAF Procurement
  CAAS, or a central entity it appoints, will be authorised to procure, manage, and allocate SAF and SAF EAs. This centralised approach will enable CAAS to aggregate demand for SAF, achieve economies of scale and provide a cost-effective mechanism for SAF purchases

Full implementation details and levy amounts will be announced after the Bill is passed in Parliament.

Singapore is committed to the long term, sustainable growth in its aviation sector, balancing environmental sustainability while ensuring that Singapore’s air hub remains competitive. The Singapore Sustainable Air Hub Blueprint, developed by CAAS alongside industry inputs, outlines an action plan to decarbonise its aviation sector. Goals include reducing domestic aviation emissions by 20% from 2019 levels by 2030 and achieving net zero domestic and international aviation emissions by 2050.

In order to achieve these goals, 12 initiatives across various domains (airport, airline and air traffic management) will be rolled out, alongside five enablers to create the conditions for effective implementation, such as building a SAF ecosystem to support local SAF utilisation. The usage of SAF serves as a critical pathway for decarbonisation and, according to the International Air Transport Association (IATA), SAF is expected to contribute around 65% of the carbon emission reduction required to achieve net zero by 2050.

^{Photo of a plane parked on an airport apron. Photo: Canva}