CAAS(Amendment) Bill Introduced in Parliament to Implement Sustainable Aviation Fuel Policies

1.     On 22 September 2025, the Ministry of Transport (MOT) introduced the Civil Aviation Authority of Singapore (CAAS) (Amendment) Bill for its First Reading in Parliament. The Bill proposes legislative amendments to the Civil Aviation Authority of Singapore Act 2009 to allow for the implementation of Sustainable Aviation Fuel (SAF) policies for air transport in Singapore. If passed, the new legislative provisions will empower CAAS to collect a SAF Levy, to set up a SAF Fund, and to procure, manage and allocate SAF and SAF environmental attributes (EAs)^[1], or establish and appoint a central procurement entity to carry out these functions. 

 2.     In February 2024, CAAS announced as part of the Singapore Sustainable Air Hub Blueprint that it will require flights departing Singapore to use SAF from 2026, with a 1% SAF target for a start, to encourage investment in SAF production and develop an ecosystem for more resilient and affordable supply. The goal is to raise the SAF target beyond 1% in 2026 to 3 – 5% by 2030, subject to global developments and the wider availability and adoption of SAF.

3.     The CAAS (Amendment) Bill has three key provisions: 

a.     First, it provides that a SAF Levy be payable to CAAS in respect of a flight, or passenger or cargo on a flight, that takes off from an airport in Singapore. The SAF Levy will be introduced in 2026. To provide cost certainty to air transport users, the SAF Levy will be set at a fixed quantum based on the volume of SAF needed to achieve the SAF target and a projected SAF premium^[2]. If the actual final SAF premium differs from projections, the SAF Levy quantum will not change. Instead, the SAF uplift will be adjusted accordingly, resulting in actual volumes that differ from those needed to achieve the SAF target. The SAF Levy quantum will be reviewed from time to time as necessary. The SAF Levy quantum and implementation details will be announced in due course after the Bill is passed. 

b.     Second, a dedicated SAF Fund will be set up to receive all SAF levies collected. The Fund will be used to procure SAF and SAF EAs as well as to cover related administrative costs. It will not form part of CAAS’ revenue. 

c.     Third, the Bill provides for CAAS, or a central procurement entity established by CAAS, to procure, manage and allocate SAF and SAF EAs. This will enable CAAS to aggregate demand for SAF, achieve economies of scale and provide a cost-effective mechanism for SAF purchases. The implementation details will be announced in due course after the Bill is passed.

4.     Singapore adopts a balanced approach to the long term, sustainable growth of Singapore’s aviation sector, taking into account the need for environmental sustainability while ensuring that the Singapore air hub remains competitive. The Singapore Sustainable Air Hub Blueprint was developed by CAAS in consultation with industry and other stakeholders. It sets out Singapore’s action plan for the decarbonisation of its aviation sector. Under the Blueprint, CAAS will work with aviation stakeholders to reduce domestic aviation emissions from airport operations^[3] by 20% from 2019 levels (404ktCO2e) in 2030 and achieve net zero domestic and international aviation emissions^[4] by 2050. To achieve these goals, 12 initiatives across the airport, airline and air traffic management domains will be rolled out. Additionally, five enablers will be put in place to create the conditions for the effective implementation of these initiatives. This includes building a SAF ecosystem to support the use of SAF in Singapore. The use of SAF is a critical pathway for the decarbonisation of international aviation and is expected to contribute around 65%^[5] of the carbon emission reduction needed to achieve net zero by 2050. 

^[1]SAF environmental attributes is a value representing the difference in carbon dioxide (CO2) emissions of SAF throughout its life cycle and those of the same quantity of conventional aviation fuel throughout its life cycle. SAF environmental attributes may be used by a person to meet offsetting requirements applicable to that person under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) developed by the International Civil Aviation Organization or other similar programmes, or reported by a person as carbon emissions reduction from the use of SAF under any scheme applicable to or adopted by that person for the reporting of environmental sustainability efforts undertaken by that person to stakeholders or investors of that person or regulators of the business of that person.

^[2] The SAF premium is the difference between the price of SAF and the price of conventional jet fuel.

^[3] These include emissions from the operations of vehicles, facilities and buildings for aircraft, passenger, baggage, and cargo handling at Changi and Seletar airports. It does not include targets for Changi East developments, including Terminal 5, which are not yet operational today. These will be determined separately.

^[4] These include emissions from international flights operated by Singapore-based operators.

^[5] IATA, Net Zero 2050 – SAF Factsheet.