The Civil Aviation Authority of Singapore Ministry of Transport (CAAS) last year decided to centralize the procurement of sustainable aviation fuel (SAF). In October, it established SAFCo under its oversight to manage the initiative. Tan Seow Hui, who previously led decarbonization efforts at Shell, was appointed as chief executive officer.

CAAS, a statutory board under Singapore's Ministry of Transport, is responsible for promoting aviation safety and economic development, contributing to the country's growth.

Singapore plans to raise SAF usage to 1% of total jet fuel consumption within the year, with a longer-term target of 3-5% by 2030.

In addition, from October this year, the government will introduce a Sustainable Aviation Fuel Levy on passengers and cargo departing from Singapore. The levy is the first of its kind globally. The SAF levy will vary depending on passenger class and flight distance. For economy-class travelers, the charge will range from S$1 to S$10.40 per person. SAF is said to reduce carbon dioxide emissions by up to 80% compared with conventional fossil fuel-based jet fuel.