For airlines, one initiative is a flight levy to support the use of sustainable aviation fuel. Derived from renewable sources – including agricultural residue and waste oils – such fuels can result in 80 per cent less emissions than fossil fuels.
Such fuels will be a “critical pathway for decarbonisation”, said CAAS. It is expected to contribute to some 65 per cent of the carbon reduction required for the 2050 goal.
However, its supply is limited as it costs three to five times more than normal jet fuel, and makes up only 1 per cent of current global aviation fuel demand.
To create a more resilient and affordable supply, CAAS will introduce a levy to be paid by passengers, with the revenue used to buy sustainable aviation fuel.
For 2026, the levy quantum will be calculated based on the volume of sustainable aviation fuel that could supply 1 per cent of total fuel use for flights departing from Singapore, as well as the fuel’s projected price then.
Depending on the availability and adoption of sustainable aviation fuel, the longer-term goal is for the levy revenue to cover such fuel to form 3 to 5 per cent of total fuel-use by flights by 2030.
As the fuel’s supply is limited and the market is “very nascent”, its price fluctuates more than conventional jet fuel. There is no global price index or futures markets that could allow for price risk management.
The CAAS said its approach reduces price fluctuations that could result from a volume-dictated approach. (*See amendment note)
A second initiative is using the levy revenue to centrally purchase sustainable aviation fuel, which lets Singapore “aggregate demand and reap economies of scale”, said CAAS. Businesses or organisations then purchase this fuel from the government.
The levy is not a tax as the revenue does not go to government coffers, but is used for fuel purchases, said Chee. Airlines use this fuel when departing from Changi.
With the centralised approach, the authorities can properly track and certify the carbon reductions, he added.
More details will be announced in 2025, including the specific types of passengers it will apply to, how often it will be adjusted and its exact implementation.
Industry figures said that the focus on greener fuels is crucial in achieving carbon reduction for aviation before 2050.
Willie Walsh, director-general of the International Air Transport Association, said: “We cannot get (to net-zero) without the use of sustainable fuel, there’s just no other option. Technology will not provide us a pathway to get to net-zero in the timeframe we are talking about.”
Joshua Ng, director at consultancy Alton Aviation, said that Singapore’s sustainable fuel targets are in line with those mandated by the European Union, but ramping up adoption would be a long-term endeavour as demand-side initiatives would need to be accompanied by supply-side ones.
Airports and air-traffic management
Five of the blueprint’s initiatives will reduce energy use at Singapore’s airports. These include deploying more solar power on rooftops and possibly sections of the airfields, as well as using “clean” vehicles.
Three other initiatives aim to improve the efficiency of air-traffic management and thus reduce aeroplanes’ fuel use.
These involve solutions such as long-range air-traffic flow management, with longer flights coordinated across different regions, and trajectory-based operations with more accurate flight paths and aircraft tracking.
Apart from the 12 initiatives, the blueprint highlights moves in five supporting areas: policy, industry development, infrastructure, workforce transformation and international collaboration.
These include the existing S$50 million Aviation Sustainability Programme, support for sustainability-related jobs and regional cooperation for an Asia-Pacific sustainable aviation centre.
Alton Aviation’s Ng said that the blueprint recognises that aviation sustainability is a “whole-of-industry effort, with significant collaboration needed among all stakeholders”.
The 2030 goal is an important near-term target, with action that can be taken relatively quickly over the next few years, he noted.
*Amendment note: An earlier version of the story stated that the sustainable aviation fuel levy will be used to cover the amount of such fuel needed for a target percentage of flights. This is incorrect, as the levy will be used to cover the target percentage of fuel use by flights. The CAAS estimates that the additional cost added by the levy for a flight from Singapore to London is S$16, not S$18 as previously stated. The CAAS has also clarified that its approach is not a volume or percentage-based one.