Singapore will require airlines leaving the city-state to gradually use low-carbon fuel from 2026, the transport minister announced on Monday.
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But since this sustainable fuel is three to five times more expensive than conventional fuel, authorities will introduce a tax on tickets to cover the cost, Chee Hong Tat said at the Singapore Air Show.
“To boost the adoption of sustainable fuel (SAF) in Singapore, we will require flights from Singapore to use SAF from 2026,” Mr Chee said in a speech.
Commercial aircraft will need to use a fuel blend of 1% sustainable fuel from 2026 and between 3% and 5% by 2030, he added.
The move will be “an important signal for fuel manufacturers to invest in new sustainable fuel (SAF) production facilities,” Mr Chee added.
Aviation is responsible for 2-3% of global CO2 emissions, but it is one of the hardest sectors to decarbonize.
Low carbon fuels (SAF) are made from renewable biomass and waste and can represent up to 50% of the fuel blends used in aviation.
These sustainable fuels are considered a key tool for decarbonizing the aviation sector, but the technology is still in its infancy and production remains expensive.
To partially offset the cost of using the SAF, Singapore charges a tax that varies depending on the distance traveled and class of travel.
The additional cost of an economy class ticket on a direct flight from Singapore to London could be 16 Singapore dollars ($12), according to Mr Chee.
The International Civil Aviation Organization (ICAO) has set a target for the industry to achieve net zero CO2 emissions by 2050.