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Singapore’s ‘mild’ green jet fuel levy lags global targets but provides clarity to industry: observers

Derryn Wong

Derryn Wong

Published Mon, Feb 26, 2024 · 05:00 AM
    • Aviation industry observers say the proposed levy by Singapore to fund sustainable jet fuel use will have only a minor effect on ticket prices.
    • Aviation industry observers say the proposed levy by Singapore to fund sustainable jet fuel use will have only a minor effect on ticket prices. PHOTO: BT FILE

    SINGAPORE’S proposed levy on flights to fund sustainable aviation fuel lags international targets, said observers. Even so, it still provides some much-needed clarity to the aviation industry, with only a minor impact on air ticket prices, they said.

    The levy, which was announced on Feb 19 and is to be applied from 2026, will be paid by passengers on all flights leaving Singapore.

    The revenue collected will be used to buy sustainable aviation fuel. The levy quantum will be set so as to cover 1 per cent of all jet fuel used by departing flights, to be increased to 3 to 5 per cent by 2030.

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