Singapore’s new sustainable aviation fuel levy and fund, and their implications for airlines, banks, and lessors

2 January 2026

On 19 November 2025, the Civil Aviation Authority of Singapore (Amendment) Act 2025 (“Act”), which was passed in Parliament on 14 October 2025, was gazetted. The Act seeks to assist Singapore in achieving its decarbonisation goals and aspirations of reducing international aviation emissions by 5% by 2030 through the use of sustainable aviation fuel (“SAF”) and other clean energies by amending the Civil Aviation Authority of Singapore Act 2009 to establish a SAF Fund and impose a SAF levy for all outbound flights from Singapore, which will be utilised for certain designated purposes, e.g. the purchase of SAF and/or SAF environmental attributes. The legislative amendments introduced in the Act will come into operation on a date to be appointed by the Minister for Transport by notification in the Gazette.

This article provides an overview of the key amendments introduced in the Act. In this regard, the article covers the following areas of interest:

• the imposition of a new SAF levy with respect to passengers, cargo, and/or flights departing from Singapore and which may be passed on to certain parties, namely passengers, consignors of goods by air, and flight charterers;
• the establishment of a new SAF Fund, the source of funds contributed into the SAF Fund, and the specific purposes for which the funds may be withdrawn; and
• the implications of the Act on airlines, banks, and lessors and our thoughts on the mitigation of the same.

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