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Issue 211: Singapore defers green jet fuel levy for cargo; TUV SUD opens decarbonisation centre

This week in ESG: One-year delay for fuel charge to give air cargo industry time to prepare; S$30 million decarbonisation centre to address trust in carbon markets

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Kenneth Lim

Kenneth Lim

Published Fri, Sep 11, 2026 · 07:00 PM
    • Global sustainable aviation fuel production remains below one per cent of the fuel mix, far below the 2050 target of 65 per cent.
    • Global sustainable aviation fuel production remains below one per cent of the fuel mix, far below the 2050 target of 65 per cent. ILLUSTRATION: KENNETH LIM

    Energy transition

    Sustainable aviation fuel needs a reality check

    Singapore’s decision to delay a green jet fuel levy for air cargo is the latest challenge confronting efforts to decarbonise the aviation sector.

    The sector is veering further in the wrong direction with regards to sustainable aviation fuel, and it seems increasingly likely that the industry will have to adopt more realistic targets or accept widespread non-compliance. If that happens, investors in the sector may face higher-for-longer emissions in their portfolios as well as greater uncertainty about climate transition risks.

    ESG InsightsEnergy transitionAviationSustainable aviation fuelCarbon MarketsESG

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