Singapore will introduce the world’s first green fuel levy on departing flights from October 2026. Passengers will pay a small fee, based on distance and cabin class, to fund Sustainable Aviation Fuel (SAF). The levy supports Singapore’s goal of using at least 1% SAF by 2026, rising to 3–5% by 2030, helping the aviation sector cut emissions and build a greener air hub.

2025: HEFA remains the dominant SAF production pathway, using used cooking oil, animal fats, PFAD and vegetable oil, etc., but varieties of next-gen feedstocks are under development.  Innovations like Power-to-Liquid (PtL) and alcohol-to-jet processes promise lower carbon intensity, though they face high costs and technical immaturity. Global SAF demand still accounts for just 0.7% of global jet fuel.

Key Challenges

•  Feedstock Constraints: Limited supply of sustainable feedstocks (e.g., waste oils, biomass) restricts scaling. 

•  Cost: SAF is 2–5 times more expensive than fossil jet fuel, hindering adoption without subsidies or incentives.

•  Policy Gaps: Inconsistent global regulations and insufficient investment slow progress. Harmonized policies and long-term incentives are needed to reduce risks for producers.

•  Energy Density: SAF has lower energy density than conventional fuel, requiring larger volumes for long-haul flights, which poses logistical challenges.

Outlook

SAF is projected to contribute 65% of global jet fuel demand the aviation industry’s emission reductions by 2050, with production expected to accelerate in the 2030s as policies align and costs decrease. Innovations in feedstocks (e.g., municipal waste, green hydrogen) and production pathways (e.g., PtL, Fischer–Tropsch) are critical to achieving net-zero goals. However, SAF’s current share (0.7% of jet fuel) underscores the need for massive investment, regulatory support, and technological breakthroughs to meet targets in future.  

This history reflects SAF’s evolution from experimental flights to a cornerstone of aviation decarbonization, tempered by ongoing economic and technical hurdles. For further details on specific policies or production pathways, I can dive deeper if you’d like.