Article

The Market Shaping Accelerator (MSA) has introduced a Pull Incentive Sizing Tool to determine optimal funding levels for innovation incentives. These pull mechanisms, including advance market commitments (AMCs), have been effective in various sectors, notably in global health and carbon removal, raising over US$1 billion for durable carbon solutions.

The tool calculates the appropriate size of an incentive based on three inputs, producing an implied pull size and the number of innovation attempts the incentive aims to attract. The MSA is investigating an AMC designed to reduce methane emissions from livestock, highlighting the need for effective sizing to encourage participation from innovators.