(Bloomberg) -- 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.

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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 build and expand climate-friendly ventures.

--With assistance from Ari Natter.

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