Goldman Sees Biden’s Clean-Energy Law Costing US $1.2 Trillion

US President Joe Biden’s landmark clean-energy law will cost roughly $1.2 trillion — three times more than the official government forecast — and spur trillions more in private-sector investments, according to Goldman Sachs Group Inc.

The Inflation Reduction Act passed last year is intended to encourage investment in renewable-energy sources and efficiency technology. As such, it’s crucial to one of the Biden administration’s fundamental priorities: decarbonizing the economy to forestall the worst effects of climate change.

Goldman’s analysts estimate that the $1.2 trillion in government outlays will unleash another $3 trillion in investment by businesses and individuals to ...