Singapore introduced Monday plans to impose a inexperienced gasoline levy on departing flights, in a transfer that will carry ticket costs, 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 gasoline (SAF) from 2026 and deliberate to lift that to three%-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 decarbonize.
European regulators must date been essentially the most energetic in attempting to spice up using SAF, introducing guidelines that drive airways to satisfy minimal necessities for its use corresponding to 2% in France by 2025 and 5% by 2030.
Under the European mannequin, the service pays for the SAF and decides whether or not to cross the associated fee onto passengers within the ticket worth.
Singapore’s levy will range primarily based on elements 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 SG$3 ($2.23), SG$6 and SG$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 by way of artificial processes or from organic supplies like used cooking oil or wooden chips, at present accounts for 0.2% of the jet gasoline market and prices as much as 5 instances greater than typical jet gasoline.
“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 vp at ExxonMobil Asia Pacific.
High prices
Singapore’s solely present SAF producer, Neste, has the capability to provide as much as 1 million metric tons of the gasoline yearly at its refinery within the nation that began working final yr, an organization consultant mentioned, greater than 10 instances the amount required for the goal of 1% by 2026. Neste produced 251,000 tons of SAF globally in 2023, based on 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 that we charge our customers, which will have a dampening effect on the level of 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 cut back the variety of flights however it may worth some individuals out of flying and result in empty seats, which isn’t good for the setting.
“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 wanted to 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 probably be a key theme of occasions at Asia’s largest aviation gathering, the Singapore Airshow, which opens on Tuesday.
During the present, Airbus will fly its A350-1000 widebody plane with a 35% mix of SAF equipped by Shell Aviation from used cooking oil and tallow.
Singapore Airlines Chief Sustainability Officer Lee Wen Fen mentioned whereas the trade waits for SAF manufacturing to ramp up, utilizing environment friendly fashionable planes to interchange older ones that use extra gasoline is the simplest possibility.
Source: www.dailysabah.com