Singapore will impose all outbound flights to use 1% sustainable fuel from 2026, with the target expected to rise to 3-5% in 2030.
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All flights departing from Singapore will cost more from 2026, following new requirements to use sustainable aviation fuel (SAF) announced Monday by its transport ministry.
Speaking on the eve of the Singapore Airshow, transport minister Chee Hong Tat said that at least 1% of the jet fuel used in outbound flights from Changi Airport and Seletar Airport starting in 2026 will have to be SAF, with plans to raise it to 3-5% by the end of the decade subject to fuel availability.
Chee justified the seemingly modest initial targets by arguing that having overly ambitious sustainability goals would “hurt our air hub and our economy, and raise the cost of travel for passengers.”
As a consequence of the target, travellers are expected to pay higher air fares. Passengers flying to Bangkok, Tokyo and London might have to pay an additional S$3 (US$2.23), S$6 (US$4.46) and S$16 (US$11.88), respectively, according to the Civil Aviation Authority of Singapore (CAAS). The cost will be higher for premium class passengers.
What Is Sustainable Aviation Fuel?
SAF, an alternative fuel source derived from a variety of feedstocks instead of polluting sources such as oil, coal, or gas used to produce traditional jet fuel, is a key factor in reducing emissions from the aviation sector, which currently accounts for 2% of global carbon dioxide (CO2) emissions and 12% of global CO2 emissions from transport. SAF feedstock sources range from cooking oils and municipal waste to food scraps and energy crops.
The fuel, which currently comprises about 0.2% of global jet fuel use, has the potential to reduce up to 80% of lifecycle emissions – which account for the emissions made during the entire production of SAF – compared to traditional fossil fuels. Depending on the feedstock, using SAF can provide further environmental and economic benefits.
Using municipal waste as feedstock is an example of circular economy principles in practice. Deriving SAF from waste can help cut the amount of waste left to decompose in landfills while also reducing the additional CO2 emissions that will be emitted during the decomposition process. When energy crops such as camelina are used, farmers can also experience added economic benefits. Since camelina is a rotational crop that can rotate with crops such as wheat, it can create a new income source for farmers. This also reduces monocropping, which is known to affect soil health and lead to increased pest infestations.
Using SAF will also stabilise the cost of aviation fuel by reducing reliance on fossil fuels. Compared to fossil fuels, which are limited by supply and geographical location, SAF can be derived from multiple sources. As more SAF feedstock suppliers come into the market, the price of SAF – currently two and a half times higher than traditional fuel – is expected to stabilise, offering airlines a more sustainable fuel source less affected by price fluctuations.
More on the topic: All You Need to Know About Sustainable Aviation Fuel
Global Progress
The first ever flight to exclusively use SAF took off in 2018. Since then, uptake has been modest when compared to total industry fuel demand.
Two of the key reasons for the slow uptake are the limited supply of and accessibility to sustainable fuels. SAF is only produced in small quantities due to limited feedstock and facilities, meaning its unit cost of production is higher than traditional fuels. The overall higher price of SAF is a significant barrier to more widespread usage across airlines.
Many airports also do not have the mechanisms in place to provide SAF to aircrafts. Currently, only a few global airports, including Oslo, Bergen, Stockholm and Los Angeles, can provide a consistent SAF supply. Moreover, 2023 research demonstrated that only 12 of 32 top – or busiest – airports in the world showed evidence of SAF in their sustainability strategies, six of which are in Europe, four in North America, one in Asia, and one in Australasia; none was either in South America or Africa.
Nevertheless, an analysis by the International Air Transport Association (IATA) revealed that there can be a viable market for SAF even if as little as 1% of the world’s fuel uses SAF, i.e. if 10% of the world’s aircrafts runs on a fuel that is a 10% SAF and 90% traditional fuel blend.
Outlook
Acceleration of SAF usage across global aircrafts requires both infrastructure development and policies that can support its uptake, including allocating sufficient feedstock for fuel production and financing processes to scale SAF production.
Investments in the infrastructure needed to make it more accessible are just as important.
In July 2021, the European Union (EU) proposed a new regulation called ReFuel EU, aimed at levelling the playing field for SAF across EU countries. As part of the regulation, EU airports are required to provide the necessary infrastructure for the supply and blending of SAF. Since then, the 27-bloc has also introduced a minimum SAF requirement of 2% at all EU-airports by 2025, rising to 6% in 2030 and 70% by mid-century.
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