2024 Election Reflection

As we digest the results of yesterday’s election, we wanted to reach out to share some initial reactions and perspective.

We accept the reality that President-elect Trump and his cabinet and a Republican controlled Senate will not be favorable for U.S. climate action. While we await the results of the House of Representatives elections, we are preparing for some level of repeal of IRA funding and weakening of key federal agencies like NOAA, the EPA, and the DOE. We expect that fossil fuels and related technologies will be strengthened and that the energy transition will slow down. But not stop.

The commitments of businesses as well as governments around the world are not likely to reverse course because of this election. The facts of climate science remain, and the wide majority of people around the world – 73% - accept that humans are contributing to climate change and action is needed to address it.

In fact, Buoyant’s work is even more important now that we do not have federal leadership on climate. We must continue to invest in solutions that have commercial appeal and that have meaningful near-term impact on carbon emissions and climate adaptation. We will need the support of business leaders who share our urgency, and we will need to build alliances with international businesses and help our companies expand globally to countries that have strong support for climate action. Additionally, our digital thesis is even more relevant because our portfolio companies have commercially ready solutions that primarily sell to other businesses, and are not reliant on government incentives or policy.

Buoyant is committed to our values of:

1. Cultivating a climate community
2. Partnering deeply with our entrepreneurs and investors
3. Being curious, open-minded, and constantly learning

In the coming days we will be reaching out to our portfolio CEOs to help them strategize how to thrive amidst this changing political landscape. And we will continue to understand anticipated federal changes as we hunt for our last few investments in Fund 1 and think about our strategy for Fund 2.

While we are disappointed, we are undeterred. And we are eager to double-down on our goals of investing for the best climate outcomes and best financial results for our investors. As Martin Luther King Jr. said, “The arc of the moral universe is long, but it bends towards justice.”  Change is happening and while it is expected to be bumpy the next few years, and may even feel like we are going backwards, we know that our collective work is making a difference, and future generations depend on us to prevail.

Onwards and upwards,

Amy, Allison, Laura, Alex and Joanna