Singapore plans next month to launch sustainable aviation fuel credits in a move designed to reduce carbon dioxide emissions.
The scheme, launched by the Civil Aviation Authority of Singapore (CAAS), Singapore Airlines and state asset fund Temasek, will sell 1,000 credits generated from 1,000 tonnes of sustainable aviation fuel from Singapore’s Changi Airport.
Sustainable aviation fuel is made from sustainable resources that can be mixed with any fossil fuel to reduce emissions without requiring modifications to aircraft or fuelling infrastructure.
By purchasing these credits, buyers can help to stimulate demand for sustainable aviation fuel, support its development and advance its adoption, the three entities said in a joint statement.
The credits are expected to cut carbon dioxide emission by 2,500 tonnes. Global aviation produced about 900 million tonnes of carbon dioxide in 2019, according to the International Council on Clean Transportation.
“The launch of the credits provides customers including corporate and individual travellers, as well as freight forwarders an avenue to do their part for the environment, and reduce their carbon footprint,” the statement said.
Freight forwarders can in turn also sell the credits to their downstream clients to reduce carbon emissions from their business operations.
“The creation of a trusted and vibrant marketplace for the sale and purchase of these credits in Singapore will help support the adoption of sustainable aviation fuel, which is essential for the decarbonisation of the aviation sector,” Han Kok Juan, director-general of the CAAS, said.