World’s First Green Fuel Tax on Airline Tickets to Be Introduced
Singapore will become the first country in the world to implement a “green fuel tax” on airline tickets starting in 2026, as part of its effort to reduce aviation-related carbon emissions. The levy will apply to flights sold after 1 April 2026 and departing Singapore on or after 1 October 2026, adding up to approximately 41.60 Singapore dollars (32 USD) per ticket at most.
The tax amount will vary depending on flight distance and travel class. For economy and premium economy passengers, short-haul flights within Southeast Asia will incur only a 1-SGD surcharge, while long-haul flights to the United States may see fees of up to 10.40 SGD. For business and first-class passengers, the tax may increase up to fourfold. Transit passengers flying through Singapore will be exempt, while cargo flights will face a separate, weight-based levy.
Revenue generated from the tax will be used to centrally purchase sustainable aviation fuel (SAF), produced from sources such as waste oils or agricultural feedstock. The Singapore government aims to raise SAF usage to between 3% and 5% by 2030 under this new policy.
