Singapore Sets 40% Emissions Floor for Jet Fuel Buying

Singapore will buy only sustainable aviation fuel that cuts lifecycle emissions by at least 40% against conventional jet fuel, a threshold four times the minimum under ICAO's CORSIA framework. The Civil Aviation Authority of Singapore (CAAS) and its procurement arm announced the criteria on Nov. 5, ahead of a first tender due by mid-December.

The rules are already with 15 potential suppliers and producers. The Singapore Sustainable Aviation Fuel Company (SAFCo), wholly owned by CAAS and created to secure green fuel for the city-state's air hub, will run the tender.

Why 40% and not less?

Daniel Ng, CAAS chief sustainability officer, called the 40% threshold a "modest starting point" — one that nonetheless "sends a strong signal", he told The Straits Times. The figure sits well above the 10% floor under the Carbon Offsetting and Reduction Scheme for International Aviation, and CAAS benchmarked it against standards in other jurisdictions.

The point, Ng said, is ensuring that Singapore's push for SAF adoption translates into meaningful emissions reductions rather than box-ticking. Eligible fuel must also qualify under CORSIA itself.

What is being bought, and when?

• First tender: called by mid-December 2024, covering an initial 20 to 30 kilotonnes.
• Delivery: fuel in blended form from June 2027.
• Targets: SAF at 1% of all jet fuel used at Changi and Seletar airports in 2027, rising to 3-5% by 2030.
• Further tenders: expected as volumes ramp up, according to CAAS and SAFCo.

The initial volume functions partly as a market test. SAFCo will use it to gauge supplier response before committing to larger purchases.

Who pays, and how much?

A green jet fuel levy starts on Jan. 1, 2027, applying to passengers departing Singapore on tickets bought from Oct. 1, 2026. Economy and premium economy travellers will pay between $1 and $10.40 per departure; business and first class passengers between $4 and $41.60. For context, the top band is roughly the price of an airport meal — a modest per-passenger cost spread across millions of annual departures.

SAF, typically produced from waste streams such as used cooking oil, remains considerably more expensive than conventional jet fuel, which is precisely why the levy exists.

Can supply meet the target?

SAFCo chief executive Tan Seow Hui said about 20 suppliers have been engaged ahead of procurement. "There's strong interest in supplying Singapore," she told The Straits Times on Nov. 4, adding that available supply is sufficient to meet the 1% target for 2027.

The final purchase volume, however, depends on price. Tan said SAFCo's priority is securing the most attractive prices so the levy collected from travellers buys as much fuel as possible. Favourable pricing could see Singapore exceed its 1% target; higher prices mean the country will "have to adjust accordingly", she said.

Bids will be assessed on price competitiveness, supply chain resilience and delivery certainty, alongside sustainability documentation capabilities and the ability to support Singapore's SAF ecosystem development.

The mid-December tender will offer the first hard evidence of whether supplier interest converts into volumes at prices the levy can sustain.