Singapore will from next year introduce a green fuel levy of up to S$41.60 (US$31.95 or RM133) for departing passengers to help reduce aviation emissions.

Economy and premium economy passengers, along with those on short-haul flights, will face much lower fees.

The Civil Aviation Authority of Singapore said Monday that charges will be S$1 for Southeast Asia routes and S$10.40 for flights to the Americas, with business and first-class travellers paying four times these amounts.

Singapore becomes the first country in the world to impose a passenger levy, a move that carries added weight given its status as a major aviation hub.

Revenue from the levy will fund the centralised purchase of sustainable aviation fuel, typically produced from waste oils or agricultural feedstock, as Singapore aims for a SAF adoption rate of 3 per cent to 5 per cent by 2030.

Globally, aviation accounts for a relatively small share of greenhouse gas emission, just 1.2 per cent last year, according to the European Commission.

However, rising travel demand, along with the higher cost and limited availability of sustainable fuels, remains a major challenge for the aviation industry’s decarbonization efforts.

Although SAF production doubled last year, it still represented just 0.3 per cent of global jet fuel consumption, according to the International Air Transport Association.