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SINGAPORE - A credit scheme for greener aviation fuels will be rolled out in July, to give businesses and travellers the option of paying more to reduce their carbon footprint when they fly and transport goods by air.

Announcing the pilot scheme on Wednesday (June 8), Transport Minister S. Iswaran said the Civil Aviation Authority of Singapore (CAAS), Singapore Airlines (SIA) and Temasek will release more details shortly.

Sustainable aviation fuels currently cost up to three times that of conventional jet fuel, and credit schemes are one way for airlines to bring down the cost of using more eco-friendly fuels.

All SIA and Scoot flights out of Changi Airport will use a blend of refined jet fuel and sustainable aviation fuel - made from used cooking oil and waste animal fats - in a one-year trial from the third quarter of this year.

The use of greener fuels is expected to reduce about 2,500 tonnes of carbon dioxide emissions over one year. Before the Covid-19 pandemic, commercial aviation contributed about 900 million tonnes of carbon dioxide, or about two per cent of global carbon emissions, yearly.

In his speech at Temasek's Ecosperity conference on Wednesday, Mr Iswaran also outlined Singapore's efforts to green its land, air and sea transport.

On greening land transport, which makes up about 14 per cent of the country's total emissions, he emphasised the need to shift more commuters from private cars to public transport, and from internal combustion engine cars to electric cars.

Providing an update on the take-up rate of electric cars, he said such registrations formed 8.4 per cent of all new car registrations in the first five months of the year - more than twice the rate last year and over 20 times that in 2020.

This is a sign that financial incentives to reduce the cost of electric cars and efforts to increase the network of electric chargers are bearing fruit, he said, adding: "We expect this momentum to gather pace."

Mr Iswaran noted that the Government will expand the MRT network from 250km to 360km over the next ten years to increase the proportion of trips on public transport.

The Land Transport Authority has estimated that the carbon footprint of a single journey can be reduced by 85 per cent if people switch from driving an internal combustion engine car to the MRT.

In the aviation and maritime sectors, Mr Iswaran said Singapore is pursuing decarbonisation on three broad fronts: by increasing efficiency of its planes, ships and its air and sea ports; by electrifying ground vehicles and equipment; and by using eco-friendly fuels in planes and ships.

For instance, SIA has kept its fleet young with an average age of about six years, he noted at the event, which was held at Sands Expo and Convention Centre.

With every new generation of aircraft typically more fuel-efficient - up to 15 per cent to 25 per cent for Boeing aircraft - SIA's fleet is one of the most fuel-efficient in the world, he said.

On the shipping front, the Maritime and Port Authority of Singapore has streamlined port clearances to reduce wait time for ships, which in turn lowers their emissions.

The $155 million Global Centre for Maritime Decarbonisation set up last year is also actively testing and deploying green technologies and fuels, starting with research into ammonia, even as Singapore begins to electrify its 1,600 small harbour craft used to make shore-to-ship deliveries.

Singapore has also signed several multilateral agreements recently to work with other countries to green the aviation and maritime sectors, Mr Iswaran said, citing the Castor Initiative that brings together public and private partners to build the world's first ammonia-fuelled tanker by 2026.

This article was first published in The Straits Times. Permission required for reproduction.