The Civil Aviation Authority of Singapore (CAAS) has set a target of 1% use of sustainable aviation fuel (SAF) from 2026, Eco-Business reported.

By 2030 the target would increase to 3%-5%, the 22 February report said.

Financed through a passenger levy, the initiative could increase the cost of a flight to Bangkok by US$2.20 and to London by US$11.90, Eco-Business wrote.

The aim of the levy was to fund a centralised procurement strategy aimed at lowering costs when compared to individual airlines negotiating their own deals.

Although expected to lead to the promotion of increased SAF production in the next few years, the initiative had also raised concerns about short-term supply challenges and the complexities of sourcing raw materials in the Southeast Asian region, the report said.

Janos Ambros Reyes, chairman of Philippines-based consultancy AeroStrategies, was quoted as saying he expected Singapore’s move to temporarily add to existing SAF supply issues.

“There could be a bit of a market shock but I think the market would adapt and eventually [Singapore’s SAF target] will be good for supply,” Reyes said, adding that major airlines – even in countries without SAF targets – were already studying procurement options.

Smaller airlines could benefit from Singapore’s scheme, as without bulk purchase schemes they could find it difficult to enter SAF markets independently, according to independent aviation analyst Brendan Sobie.

“It is kind of levelling the playing field, because it opens up access to every carrier, rather than just the big ones,” Sobie said.

Although Singapore’s aviation authority did not specify the volume of SAF it was looking to procure in 2026 to make up the targeted 1% blend, as an estimate – using data from private sector climate group First Movers Coalition – a hundredth of Singapore’s 2019 peak jet fuel consumption of 5.3M tonnes would be 53,000 tonnes.

Aviation executives at a Singapore airshow this week had questioned the availability of SAF for the region, Eco-Business wrote.

“I don’t know where you are going to resource 1% SAF in Changi, from existing feedstocks,” Riyadh Air operations chief Peter Bellew was quoting as saying, adding that in the long term there could be more supply from novel synthetic propellant made from hydrogen fuels.

According to Singapore authorities, the 1% target for 2026 was realistic although the final volume purchased could change based on market development.

CAAS director general Han Kok Juan said Singapore was working with neighbouring countries, including Malaysia, to unlock potential SAF supply.