Goldman Sachs said President Joe Biden‘s landmark clean-energy legislation would cost approximately $1.2 trillion, which is three times more than the government’s official estimate.
What Happened: The global investment banking group said the U.S. Inflation Reduction Act passed last year will encourage trillions of dollars in private-sector investment, Bloomberg reported.
The IRA is aimed at promoting investment in renewable energy sources and technology that enhances efficiency. It has been a crucial component of the Biden administration’s objectives, which include decarbonizing the economy in order to prevent the impact of climate change.
See Also: Clean Energy Stocks Fall, Could A Senator Who Gets $500K Annually From Coal Companies Be To Blame?
Goldman Sachs analysts estimated that the $1.2 trillion allocated by Washington would unleash an additional $3 trillion in investments by companies and individuals, which will be utilized to create and extend climate-friendly businesses.
Meanwhile, Biden and European Commission President Ursula Von Der Leyen decided to begin negotiations to resolve disputes between the U.S. and European Union over the EV subsidies that are included in the renewable energy act.
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