Singapore's civil aviation chief said that the country has no choice but to mandate airlines to use green jet fuel, despite concerns about potential increases in air travel costs and its impact on the nation's competitiveness as an air hub.
“We have no choice, because if you really think about it... it is really a matter of time that we would have to deploy sustainable aviation fuel in our respective airports,” said Han Kok Juan, Director-General of Civil Aviation Authority of Singapore (CAAS), at a dialogue session at the Singapore Airshow 2024 on Tuesday, reports The Straits Times.
During the dialogue, Han was asked why the aviation authorities want to mandate eco-friendly fuel use, which would make air travel more expensive and compromise the competitiveness of airlines and the Singapore air hub.
Singapore target is for sustainable fuel to form 1 percent of all jet fuel used at Changi and Seletar airports in 2026. The goal is to reach 3 percent to 5 percent by 2030.
Acknowledging that the move will make operating out of the Singapore hub “a bit more expensive”, he said Singapore will try to be a lot more competitive and attractive in other ways.
Singapore's target is for sustainable fuel to constitute 1 percent of all jet fuel used at Changi and Seletar airports by 2026, with the goal of reaching 3 percent to 5 percent by 2030. To achieve this, Singapore plans to impose a new green jet fuel levy on travelers departing from 2026, as flights leaving the city-state will be required to use sustainable aviation fuel from that year onwards.
This levy will result in higher airfares for travelers departing Singapore.
Economy-class passengers are estimated to incur $3 for short-haul flights, $6 for medium-haul flights, and $16 for long-haul flights, while passengers in premium classes will pay more.
Han emphasized the need for time to build an ecosystem for the use of eco-friendly fuel and to enhance resilience through increased green fuel production capabilities in Singapore and the region.
Sustainable jet fuel is estimated to contribute about 65 percent to the reduction in carbon emissions necessary for the aviation industry to achieve net-zero emissions.
CAAS will centrally procure eco-friendly aviation fuel, utilizing the funds collected from the levy for fuel procurement.
Han added that CAAS is engaging with companies in the energy and financial sectors to explore cost-effective adoption of green jet fuel.
To maintain fuel costs affordable, Han stated that the authority will diversify the pool of eco-friendly fuel suppliers and expand the sources of supply.