Singapore on Monday mentioned travellers would wish to bear the price of the transition towards green jet fuel, saying plans for a levy that will carry ticket costs on departing flights because the aviation trade searches for a viable funding mannequin.
Introduced by Singapore’s transport minister at an trade summit on the eve of the Singapore Airshow, the city-state mentioned it aimed for all departing flights to make use of 1% sustainable aviation fuel (SAF) from 2026 and deliberate to boost that to 3-5% by 2030, topic to world developments and the broader availability and adoption of SAF.
“It will hurt our air hub and our economy, and raise the cost of travel for passengers if we are overly ambitious with our sustainability goals,” Transport Minister Chee Hong Tat mentioned of the necessity to give modest targets initially.
Aviation produces about 2% of the world’s emissions however is taken into account one of many hardest sectors to decarbonise.
European regulators should date been essentially the most energetic in making an attempt to spice up the usage of SAF, introducing guidelines that pressure airways to satisfy minimal necessities for its use reminiscent of 2% in France by 2025 and 5% by 2030.
Under the European mannequin, the provider pays for the SAF and decides whether or not to cross the associated fee onto passengers within the ticket worth.
Singapore’s levy will differ primarily based on components such because the flight’s distance and journey class.
For instance, in 2026 the worth of an economic system class ticket on a direct flight from Singapore to Bangkok, Tokyo and London by an estimated quantity of round S$3 ($2.23), S$6 and S$16 respectively to pay for the SAF, mentioned the Civil Aviation Authority of Singapore, which developed the plan in session with trade and different stakeholders.
SAF, which may be made both via artificial processes or from organic supplies like used cooking oil or wooden chips, at present accounts for 0.2% of the jet fuel market and prices as much as 5 instances greater than typical jet fuel.
“A big challenge that we are facing that is contributing to the high costs is actually securing bio-derived feed,” mentioned Ong Shwu Hoon, Asia Pacific fuels vice chairman at ExxonMobil Asia Pacific.
High Costs
An Airbus A350-1000 flies throughout an aerial flying show forward of the Singapore Airshow at Changi Exhibition Centre in Singapore, February 18, 2024
| Photo Credit:
REUTERS
Singapore’s solely present SAF producer Neste has the capability to supply as much as 1 million metric tons of the fuel yearly at its refinery within the nation that began working final yr, an organization consultant mentioned, greater than 10 instances the quantity required for the goal of 1% by 2026. Neste produced 251,000 tons of SAF globally in 2023, in line with its most up-to-date monetary report.
The aviation trade says SAF use must rise to 65% by 2050 as a part of a plan to succeed in “net zero” emissions by then, although that may require an estimated $1.45 trillion to $3.2 trillion of capital spending.
“There will be a cost associated with transitioning to net zero. And ultimately, that cost will have to be reflected in the ticket prices, which will have a dampening effect on growth,” IATA Director General Willie Walsh mentioned on the Singapore summit.
IATA, which represents about 320 airways, estimates the worldwide airline trade will develop at about 3.3% a yr over the following 20 years, considerably decrease than between 2010 and 2019, due to environmental challenges and provide chain points, Walsh mentioned.
He mentioned there have been dangers that taxation to pay for aviation sustainability measures wouldn’t scale back the variety of flights nevertheless it might worth some folks out of flying and result in empty seats, which isn’t good for the atmosphere.
“It’s got to be a conversation: economics and viability, and environment sustainability,” Walsh mentioned.
Luis Felipe de Oliveira, director basic of Airports Council International, mentioned governments should spend money on new SAF refineries to assist convey down the associated fee.
“The solution is not capacity restrictions, the solution is not taxation, the solution is finding ways that you can work together to increase production which then will be used by the airlines in the system,” he mentioned.
Sustainability will likely be a key theme of occasions at Asia’s largest aviation gathering, the Singapore Airshow, which opens February 20.
During the present, Airbus will fly its A350-1000 widebody plane with a 35% mix of SAF provided by Shell Aviation from used cooking oil and tallow.
Singapore Airlines Chief Sustainability Officer Lee Wen Fen mentioned, whereas the trade awaits ramped up SAF manufacturing, changing older planes with environment friendly trendy ones is the best choice.
