Under the plan, announced by Chee Hong Tat at the Changi Aviation Summit on the eve of the Singapore Airshow, the country aims for a 1% SAF target from 2026 and plans to raise it to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF.

“The use of SAF is a critical pathway for the decarbonisation of aviation and is expected to contribute around 65% of the carbon emission reduction needed to achieve net zero by 2050,” the Civil Aviation Authority of Singapore (CAAS), which developed the plan in consultation with industry and other stakeholders, said in a statement.

SAF can be made either through a synthetic processes or from biological materials, like used cooking oil or wood chips. SAF currently accounts for 0.2% of the jet fuel market.

The aviation industry says this will rise to 65% by 2050 as part of a plan to reach “net zero” emissions by then, though that will require an estimated $1.45 trillion to $3.2 trillion of capital spending.

SAF producers complain that they lack certainty about whether fuel they produce will be bought, while airlines say there is not enough supply at the right price. SAF currently costs up to five times more than traditional jet fuel.

CAAS plans to introduce a SAF levy for the purchase of SAF to provide cost certainty to airlines and travellers, it said. The levy will be set at a fixed quantum, based on the SAF target and projected SAF price at that point in time.

It will vary based on factors such as distance travelled and class of travel. For example, the levy to support a 1% SAF uplift in 2026 could increase ticket price for an economy class passenger on a direct flight from Singapore to Bangkok, Tokyo and London by an estimated amount of around S$3 ($2.23), S$6 and S$16 respectively.

Passengers in premium classes will pay higher levies, Singapore’s aviation regulator added.