The new climate law, combined with an urban real estate market reshaped by COVID, brings an opportunity to boost housing supply and cut emissions at the same time, Ben writes.

The big picture: Remote and hybrid work is here to stay after the pandemic, leaving lots of urban commercial space empty or under-utilized. Meanwhile, residential rent increases have outpaced income growth for years.

Driving the news: A new analysis from researchers at New York University and Columbia University explores possibilities to profitably turn office spaces into housing.

• Overall, they find that roughly 11% of commercial office buildings in the 105 largest cities are suitable candidates for conversion.
• The study sees potential for around 400,000 new apartment units — and notes that for comparison, roughly 260,000 units are created annually in the U.S.

Why it matters: It's all connected, man!

• Housing is too scarce and expensive. Converting "brown" commercial stock into "green" housing can cut emissions by making these buildings cleaner and avoiding new construction.
• It also helps prevent urban "doom loops" — under-utilization lowers tax revenues and business activity; services and values decline; safety risks rise, more flight ensues and on and on.

What we're watching: The paper finds the maze of local zoning laws, permitting policies and building codes could play a major role in encouraging conversions — or stymieing them.

• At the federal level, the authors see potential for the new climate law to help subsidize green conversions in several ways, such as energy efficiency and renewables tax credits.
• One big one: The multipurpose $27 billion Greenhouse Gas Reduction Fund run via the Environmental Protection Agency. The authors see a path to supporting emissions-friendly conversions and creating affordable units.

Of note: In late July, the White House name-checked the fund as an avenue for these kinds of conversions, so keep an eye on what's ultimately supported with federal money.

Yes, but: Your mileage may vary. Lots of forces affect the economic viability of conversion projects, ranging from material costs to rental market conditions and plenty in between.

The bottom line: "While challenges abound, the potential to reimagine urban spaces for an economically and ecologically more sustainable future is immense," the paper concludes.

Here's a full analysis, and co-author Arpit Gupta's explainer on X, formerly known as Twitter

The startup Marvel Fusion and Colorado State University have launched a partnership to create a new research facility at the school's Fort Collins campus, Ben writes.

Driving the news: The $150 million venture is slated for completion in 2026, the German company and the university said in a joint announcement Monday.

What they're saying: "This public-private partnership sets the global standard for laser-based fusion research, propelling the development of a safe, clean, and reliable energy source," Marvel CEO Moritz von der Linden said in a statement.

Catch up fast: This is a big week for fusion.

• The tie-up comes a day after scientists at Lawrence Livermore National Laboratory's National Ignition Facility (NIF) said they achieved net energy gain in a fusion reaction for a second time — this time with a higher energy yield.

Why it matters: Here's the Financial Times summarizing von der Linden's take on the project:

"Whereas the NIF was established primarily to simulate reactions in nuclear weapons, the Colorado facility will be the first site specifically designed to develop the technology needed for a laser-based fusion power station."

The big picture: If — and it remains a big if — fusion can ever be commercialized, it heralds a promise of almost limitless power without the dangerous waste associated with traditional fission reactors.

The bottom line: There's a long and uncertain scientific, technical and financial road to finding this long-elusive holy grail. Still, confidence is growing.

🚗 In a rough stretch for electric vehicle startups, this counts as progress: luxury EV startup Lucid Motors yesterday said it's on track to meet its goal of producing 10,000 sedans this year, Ben writes.

• Driving the news: The company's share price rose in after-market trading following the announcement, which was part of yesterday's Q2 earnings report.
• State of play: Lucid also said it would unveil its next vehicle, the Gravity SUV, in November, and plans to begin production in late 2024. The startup reported a $764 million net loss for the quarter but said it has liquidity for funding into 2025. TechCrunch has more

😬 Proterra — which provides batteries, buses and other EV tech — is filing for Chapter 11 bankruptcy protection and plans to continue operating, the company said Monday.

• What they're saying: CEO Gareth Joyce, in a statement, cited "market and macroeconomic headwinds," and that "we look forward to sharpening our focus as a leading EV battery technology supplier."
• The big picture: Reuters notes that it's the "latest company to go belly up in an industry grappling with supply chain constraints, slowing demand and a funding drought."

🧳 Zachary Kirkhorn has stepped down as Tesla's chief financial officer after 13 years with the company, according to a regulatory filing, Axios' Dan Primack and Hope King report.

• The intrigue: Kirkhorn's departure also stirs new questions about Tesla's succession plans. The Wall Street Journal reported that board members had floated his name as a possible successor to Musk. Read Dan and Hope's full story

The vast majority of truck shipments within the U.S. are below 250 miles — a fact that supports the viability of electric models, even without ultra-long ranges, Ben writes.

Zoom in: Of roughly 12 billion tons of cargo that trucks moved domestically in 2021, 44% was moved in trips below 100 miles, and another 43% in trips between 100 and 249.

The big picture: "This breakdown has important implications as the freight sector shifts towards electric drive and other alternative fuels where range and refueling infrastructure may be limiting factors," the Energy Department said in a short primer.

"These records have dire consequences for both people and the planet exposed to ever more frequent and intense extreme events."

That's part of her statement now that the researchers have concluded — confirming prior estimates — that July air and sea surface temperatures hit record levels.

Full monthly analysis