The Civil Aviation Authority of Singapore (CAAS), Singapore Airlines (SIA), and Temasek will launch the sale of Sustainable Aviation Fuel (SAF) credits in July 2022. The sale of the SAF credits is part of a CAAS-SIA-Temasek pilot announced in November 2021 to advance the use of SAF in Singapore.
A total of 1,000 SAF credits will be available for sale. These are generated from the 1,000 tonnes of neat SAF which are blended, delivered, and uplifted from Singapore Changi Airport, and are expected to cut carbon dioxide emission by 2,500 tonnes. Every credit purchased will help to reduce 2.5 tonnes of carbon dioxide emissions.
The launch of the SAF 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. By purchasing these credits, they can also help to stimulate demand for SAF, support the development of the nascent SAF industry, and advance the adoption of SAF for aviation sustainability.
The SAF credits will be registered as part of a pilot project within the Roundtable on Sustainable Biomaterials (RSB)1 Book & Claim System to ensure that the SAF credit transactions are conducted in a trusted and transparent manner, with no double counting of credits. The Book & Claim System is enabled by the RSB which is one of the global leaders in sustainability certification standards. The Roundtable on Sustainable Biomaterials is a global membership organisation that drives the sustainable transition to a bio-based and circular economy.
SIA’s corporate customers and freight forwarders can purchase the SAF credits directly from SIA, mitigating carbon emissions related to their flights. Freight forwarders can in turn also sell the credits to their downstream clients to reduce carbon emissions from their business operations.
From the fourth quarter of 2022, all SIA customers will be able to purchase a mix of SAF credits and carbon offsets, as part of the SIA Group Voluntary Carbon Offset Programme. SIA will also partner Climate Impact X (CIX), a global exchange for quality carbon credits, to introduce a bundled portfolio consisting of SAF credits and carbon credits. The product will be designed to meet corporate demand for SAF while balancing affordability.
Han Kok Juan, Director-General, CAAS, said: “The creation of a trusted and vibrant marketplace for the sale and purchase of SAF credits in Singapore will help support the adoption of SAF which is essential for the decarbonisation of the aviation sector and a key element of the Singapore Sustainable Air Hub Blueprint which CAAS is developing.”
Lee Wen Fen, Senior Vice President Corporate Planning, Singapore Airlines, said: “As we progress with the SAF pilot in Singapore, we can now offer more opportunities for our corporate customers and travellers to mitigate their carbon emissions using SAF credits, which are registered and accounted for within the RSB Book & Claim System. This will help to accelerate and scale up the collective adoption of SAF, reinforcing our commitment to achieve net zero carbon emissions by 2050.”