The Inflation Reduction Act is the largest investment in reducing carbon pollution in United States history, but it also serves as a key investment into economic growth.

According to a press release by the U.S. Department of the Treasury, there are five key ways that the IRA and similar policies can promote growth. Reducing economic vulnerability to international price volatility is the first key objective. It further elaborates on how climate policies promoting clean energy could help buffer the economy from fluctuations in fossil fuel prices.

The press release states that reducing local pollution is another key goal. Climate policy not only improves the economy by mitigating climate change but also reduces local pollution, according to U.S. Department of Treasury. Furthermore, research shows that air pollution reduces productivity, increases sick days, and impairs cognitive performance. Government climate policies can provide additional economic benefits by reducing local air pollution.

Adapting climate change policies is another important aspect highlighted by the department to promote growth. The department explained how adaptation policies such as building sea walls, reinforcing buildings, and implementing new insurance and disaster response methods are crucial for reducing damage caused by climate-related weather disasters.

The last two keys to boost economic growth are mitigating greenhouse gases and spurring innovation and spillovers according to U.S. Department of Treasury's press release. It emphasized how temperature increases can cause declines in academic performance, future incomes, and worker productivity, thus reducing economic potential.

Furthermore, private businesses often underinvest in climate-related research and development (R&D) without government support due to market failure and global impact of climate change mitigation.