Goldman Sachs Research estimated the U.S. Inflation Reduction Act could lead to $11 trillion in total infrastructure investments by 2050, including $2.9 trillion by 2032, and help lead the country to an energy revolution.
In a report, Goldman Sachs noted, “Critical funding for this next energy revolution is expected to come from the IRA, which will provide an estimated $1.2 trillion of incentives by 2032 — creating the most supportive regulatory environment in clean tech history.”
The firm expects the transportation sector to be the most affected by the IRA. According to the report, “Modified tax credits for new EVs and commercial clean vehicles will decrease costs for cleaner transport options, as will the extension of credits for biofuels and, eventually, the creation of sustainable aviation fuel.”
Electrification through the expansion of renewable power facilities, transmission, storage, and network and building upgrades will be the drivers early in