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Singapore Introduces World’s First Green Fuel Levy

  • 13 Nov 2025
  • 2 min read

Source: IE

Singapore has become the first country in the world to introduce a Green Fuel Levy on air passengers departing from the country, starting next year.  

  • The revenue generated will be used for the centralised purchase of Sustainable Aviation Fuel (SAF) to help the aviation industry cut emissions. 
  • The aviation sector produces 1.2% of global greenhouse gas emissions, yet SAF, despite being a promise, remains costly and scarce, forming only 0.3% of global jet fuel in 2024. 

Sustainable Aviation Fuel (SAF) 

  • About: SAF is an alternative to conventional jet fuel, produced from non-petroleum feedstocks like agricultural waste, municipal solid waste, forestry residues, and waste oils. 
    • It can be blended (10–50%) with Aviation Turbine Fuel (ATF) without modifications to aircraft engines or existing airport infrastructure. 
  • Significance of SAF: 
    • Emission Reduction: SAF can lower greenhouse gas emissions by up to 80%, depending on the feedstock and technology used. 
    • Compatibility: Fully compatible with existing aircraft engines and refuelling infrastructure. 
    • Renewable and Flexible: Can be derived from various renewable feedstocks, enabling fuel diversification. 
    • Global Impact: SAF could contribute up to 65% of emission reductions required for global aviation to reach net-zero CO₂ by 2050, in line with the Paris Agreement. 

India’s SAF Roadmap 

  • The National Biofuel Coordination Committee has set SAF blending targets for international flights as 1% by 2027, 2% by 2028, and 5% by 2030. 
  • India’s first commercial passenger flight using indigenously produced SAF-blended ATF was successfully operated by AirAsia (Pune–Delhi route) in May 2023. 
  • It will help India achieve Net Zero target by 2070.
Read More: Sustainable Aviation Fuel

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