Advance Market Commitments

An Advance Market Commitment (AMC) is a strategy where governments or organizations guarantee a future market for a product, such as vaccines, by committing to purchase a certain amount at a set price. This assurance encourages companies to invest in research and production because they know there will be demand. AMCs help address market uncertainties, especially for innovations that benefit public health or society but might seem risky or unprofitable initially. Essentially, it aligns incentives to ensure new solutions are developed and made available, especially where market forces alone might not be sufficient.