Deep Insight: How the ICJ’s climate ruling could affect construction
This week, the International Court of Justice (the world’s top court), declared that governments can be held legally responsible for climate inaction, even if they aren’t party to the Paris Agreement.
The opinion was the result of a campaign by youth activists in Vanuatu requesting legal guidance in two parts:
It asked the court to clarify what countries’ obligations are under international law to reduce emissions.
What the legal consequences are for countries who actions (or inaction) harms the climate.
The finding finds that failing to regulate emissions, subsidizing fossil fuels or delaying action may constitute a breach of international law. Where a ‘casual nexus’ can be shown between a state’s harmful actions and injury incurred by another state, this could result in the payment of reparations.
While nonbinding, the decision sets the stage for a wave of lawsuits against big polluters such as the US and the EU.
With the world requiring a fivefold increase in climate funding to keep temperature rises within 1.5°C, this ruling could become a tailwind for the construction industry. If litigation increases and is recognized by courts, governments will be pressured to increase spending on decarbonization and adaptation measures.
This includes construction of:
Flood defenses (e.g., building levees, seawalls, or restoring wetlands).
Upgrading infrastructure (e.g., roads, bridges, water systems) to withstand new climate extremes.
Building decarbonization to reduce climate emissions.
Given the scale of potential climate litigation, it may take only one court’s recognition of the opinion in the case to trigger a wave of infrastructure spending.
And it could already be happening.
Early this year, a German court confirmed that major emitters can be held liable under German civil law for the consequences of climate change. Specifically, according to Weightmans’:
were there to have been a relevant and imminent impairment to property somewhere in the world, a single material corporate group emitter in Germany could in principle (if causation were proved) be obliged to pay for preventative measures according to its share of emissions.
As the financial implications of climate inaction unfold, construction firms could be at the forefront of implementing climate-resilient projects as a means of risk mitigation and lawsuit prevention for emitters.
In this issue there are:
7 Startup Fundings
14 Policy and Regulatory Changes
8 New National Infrastructure Projects & Priorities
1 New investment funds
2 Acquisitions
7 News articles
20 new jobs posted - view here
Reading time: 12 mins
Startup Funding
Asset Management
Geolava, a Californian startup, raised $4.3m in Seed funding. They have developed a spatial intelligence platform which ingest multimodal data such as satellite, drone, street imagery and regulatory data to monitor building portfolios for compliance risks, control maintenance costs (e.g identifying structural cracks early) and provide reasoning logic for decision making without relying on consultants or onsite inspections. More here.
Fleet Management
Motive, a San Francisco startup, raised $150m in funding. They have developed an AI platform to manage workers, vehicles, equipment and fleet expenditure for physical industries like construction offering features such as spend management, equipment utilization monitoring and identifying proactive maintenance opportunities. More here.
Building Materials
Hey Concrete, an Indian startup, raised ~$850k in funding. They develop sustainable and high performance interior and exterior concrete surface products such as wall panels, claddings, breeze blocks, murals, and washbasins. More here.
Robots
Planted Solar, a Californian startup, raised $12m in a second tranche of Series A funding. They have built a full stack solution to support solar farm construction including software which optimizes solar array placement and delivers permit ready drawings and robots to install the panels. More here.
Raise Robotics, a San Francisco startup, raised $7.75m in Seed funding from investors including Zacua Ventures. They have built a robotic platform for vertical construction sites able to complete high risk activities such as installation of structural components on exterior wall panels, ceilings and floors, drilling in tight locations as well as tasks such as layout and inspections. More here.
Notes:
Raise Robotics’ platform was initially a robot that was used on slab edges to install brackets for facade panels in mid to high rise structures.
As they have grown and sought use cases for adoption, they’ve focused on high risk activities such as laser measurement near edges, hammer drill for penetrations in the same areas or layout before it is safe for humans to ascend to a just-completed floor.
This approach showcases where and how robots will start being adopted on site.
Home Services
Sunsave, a London startup, raised £13m in Series A funding. They provide residential solar solutions via subscription which covers the design, installation process, monitoring and continuous maintenance services. More here.
Notes:
Sunsave offers a subscription-based product covering the delivery, installation, and monitoring of residential solar panels.
It is interesting as they appear to simply be a home services contractor with a subscription pricing model that allows them to secure long-term customer relationships, often spanning a 20 year contract period.
This pricing strategy appears to be gaining traction in the B2C / Home Services sector with a number of startups such as Honey Homes and Birdwatch offering maintenance subscriptions to home owners.
Where previously homeowners would wait for things to break before scheduling repairs, there is a movement towards scheduled, recurring maintenance plans which prevent issues before they arise.
For contractors, this transition introduces recurring revenue streams and operational predictability.
It’s additionally interesting as VCs have shown interest in funding subscription based maintenance models meaning a segment of contractors now have the opportunity to access a new funding source.
Additionally for contractors focusing on the energetic renovation / decarbonization sector, they may qualify for investment from climate-focused funds due to the alignment with sustainability goals.
Related:
Other
1KOMMA5°, a German startup, raised €150m in funding. They are a home electrification startup operating a marketplace for homeowners to buy and install carbon-neutral energy systems like solar panels and heat pumps, as well as providing the software to optimize consumption and develop virtual power plants pooling flexible energy capacity from households. More here.
Notes:
1KOMMA5° grew by acquiring smaller electrical contractors which employ electricians and installers to sell and install their own products.
The reason why is that the critical bottleneck in building decarbonization is the availability of skilled workers with Germany facing a shortage of 300,000 workers by 2030.
This shortage has led to a rise in funding for startups such as La Solive (France), Smalt and Montamo (Germany) which use a training bootcamp model to train clean energy installers to either help external companies (like 1KOMMA5°) source workers or to hire-train-deploy for their own book of work.
Policy and Regulatory Changes
The DOE has selected four sites to move forward with plans to invite private sector partners to develop AI data center and energy generation projects.
These are the Idaho National Laboratory, Oak Ridge Reservation, Paducah Gaseous Diffusion Plant and Savannah River Site.
The chosen locations are well-situated for large-scale data centers, new power generation, and other necessary infrastructure.
Energy bill could cost North Carolina billions in lost investments and jobs
Senate Bill 266 repeals the 2030 deadline by which utility Duke Energy must curb its climate pollution 70% compared to 2005 levels.
The Republican-controlled state legislature aims to vote to override this veto.
Department of the Interior Curbs Preferential Treatment for Wind Energy
This includes four orders:
Stopping Preferential Treatment for Wind Projects.
It directs the Department of the Interior to end preferential treatment for unreliable energy sources like wind calling for identifying policies biased in favor of wind and solar energy and halting support for energy supply chains controlled by foreign rivals.
Restoring Congress’s Mandate to Consider All Uses of Our Public Lands and Waters Equally
The Department will consider withdrawing areas onshore with high potential for wind energy development to ensure compliance with legal requirements for multiple use and sustained yield of public lands.
Enhancing Stakeholder Engagement for Offshore Wind Development
The Department will strengthen its guidance to ensure more meaningful consultation regarding offshore wind development, especially with tribes, the fishing industry, and coastal towns.
Reviewing the Consequences of Developing Wind Turbines on Migratory Birds
The Department will conduct a careful review of avian mortality rates associated with the development of wind energy projects located in migratory flight paths.
New York becomes first state to commit to all-electric new buildings
On July 25, the State Fire Prevention and Building Code Council approved an all-electric building standard.
This makes New York the first state in the nation to prohibit gas and other fossil fuels in most new buildings.
The state’s rules will apply to new structures up to seven stories tall and, for commercial and industrial buildings, up to 100,000 square feet beginning Dec. 31, 2025.
Buildings bigger than that will need to be built all-electric starting in 2029.
Trump Yanks Millions of Acres of Ocean Designated for Wind
The Interior Department’s Bureau of Ocean Energy Management announced it was rescinding huge swaths of ocean set aside for the fast-tracking of offshore wind projects by the administration.
The move applies to more than 3.5 million acres of federal waters.
New York launches 1 GW bulk energy storage solicitation using new credit
The state of New York announced its first bulk energy storage solicitation.
It issued a request for proposals to procure a total of 1 GW from storage developers.
This is part of a state goal to deploy 6 GW of energy storage by 2030.
US / EU
US-EU trade deal: What is it – and what does it mean for European competitiveness?
The US and EU have reached a deal on trade tariffs which sets a 15% tariff for most exports into the US.
Tariffs of 50% will remain in place for EU steel, aluminium and copper.
India
UK firms can offer telecom, construction services in India without local office under FTA
Companies from the UK will be able to offer services in sectors such as telecom, construction and related services in India without setting up a local presence.
They will enjoy full national treatment, meaning they will be treated on par with Indian firms.
This is due to a free trade agreement signed between the two countries on July 24.
Germany
German housing crisis: government plans construction boost
Germany's new Construction and Housing Minister announced a plan to help ease the shortage of affordable housing.
Labeled "Bau-Turbo" (construction turbo), it is a new paragraph (§ 246e) to be inserted into the German Building Code.
If passed, municipalities will be able to approve construction, change-of-use and renovation projects that deviate from the provisions of the Building Code if those projects are for the construction of new residential buildings.
Australia
Australia Boosts Clean Energy Plan to Meet Lofty Renewables Goal
Australia will expand its Capacity Investment Scheme to support another 3 gigawatts of renewable generation and 5 gigawatts of energy storage.
Australia needs to speed up its energy transition or risk missing its 2030 target.
Canada
Ontario Investing $260 Million to Protect and Train Workers
The Ontario government has launched the sixth round of the Skills Development Fund (SDF) Training Stream.
The funding is for innovative projects that support the hiring, training and upskilling of workers in manufacturing, health care, construction, automotive and other skilled trades.
This investment is part of the government’s $2.5 billion investment through SDF.
Products made and tested to a range of 130 building product standards can now be used as part of a Building Code acceptable solution or verification method.
The Building Product Specifications document contains standards and specifications that have been assessed to ensure they provide an equivalent or better level of performance than currently set out.
The first version lists US, European and other international standards alongside New Zealand equivalents for products like plasterboard, cladding and insulation.
New Zealand Wants to Double Use of Geothermal Energy by 2040
The government has begun consultation on a refreshed strategy to tap the South Pacific nation’s geothermal potential.
New Zealand built the world’s second geothermal power plant in the late 1950s and is the fifth-largest geothermal power producer in the world.
It also wants to explore how geothermal energy can be used directly in industrial, commercial and agricultural applications to replace existing coal-fired boilers.
Government to halt building code changes for three years
The Government is today moving to freeze the building code so that changes to the nation’s building rules only happen on a three year cycle.
The Building Code is currently being updated on an ad-hoc basis as best practice and regulations change.
This will also align the regulatory cycle with Australia.
National Infrastructure Projects & Priorities
US
NRC Approval Paves Way For Historic Restart Of Palisades Nuclear Plant
The Nuclear Regulatory Commission (NRC) approved a licensing package that paves the way for the plant to load fuel and resume power operations.
The approval makes Palisades the first nuclear plant in the country to move from decommissioning status back to an operating licence.
U.S. wind sector seeing a rebound — for now
The U.S. added 2.1 gigawatts of new wind capacity in the first quarter of 2025.
This is a significant increase from Q1 2024
Wind is the country's largest source of renewable electricity, providing roughly 10% of U.S. power in 2023.
The industry could see headwinds as new turbine orders fell 50% in the first half of 2025 compared to last year.
Elon Musk’s Boring Company to build Tesla tunnels under Nashville
The Boring Company, Elon Musk’s tunnel-digging company and Tennessee Governor Bill Lee have announced a plan to build a 10-mile loop.
This will connect Nashville’s downtown and its convention center to the area’s airport.
Construction won’t begin until the project clears the approvals process.
The governor’s office said the first segment of the loop could be operational as early as fall of 2026.
Fortescue axes two green hydrogen projects after Trump administration’s shift on renewables
Fortescue’s decision to cancel the two ventures in Queensland and Arizona is partially due to a shift in policy priorities away from green energy in the US.
This has changed the feasibility of its reported US$550m green hydrogen production plans in Arizona.
China
China’s June Solar Installations Hit YTD Low on Policy Rollout
China added 14.4 gigawatts of new solar photovoltaic capacity in June, the lowest so far this year and a 38.4% year-to-year drop.
The steep decline in solar installations follows the rollout of two new policy deadlines.
The 531 policy replaced the previous guaranteed feed-in tariff model with a requirement for new renewable energy projects to sell electricity on the spot market.
The 430 policy requires new distributed PV projects to prioritize self-consumption, allowing only surplus electricity to be exported to the grid.
India
Google to invest $6 billion in southern India data centre, sources say
Google will invest $6 billion to develop a 1-gigawatt data centre and its power infrastructure in the southern Indian state of Andhra Pradesh.
The data centre investment includes $2 billion in renewable energy capacity that will be used to power the facility.
The search giant's data centre will be the largest in capacity and investment size in Asia.
Europe
OpenAI Launches Stargate in Europe With Norwegian Deal
OpenAI has agreed to be an anchor customer for a new data center in Norway.
This is the first European site for the artificial intelligence company’s Stargate infrastructure effort.
It has the initial goal of delivering 230 megawatts of capacity with plans to add an additional 290 megawatts.
France
France Set to Pay a Record €9 Billion in Subsidies to Renewables
French government subsidies for renewable energy are set to jump 23% to a record €9 billion ($10.3 billion) next year.
The increase in spending comes as the country adds more solar, wind and biogas.
The subsidies for next year are split between:
Renewable power generation on mainland France, which is set to receive €7.66 billion.
Biomethane injection into gas networks, which will get €1.33 billion.
Acquisitions
Building materials maker CRH to acquire Eco Material for $2.1 billion
CRH, a global material supplier, acquired Eco Material, a near-zero carbon cement producer.
This acquisition means CRH also acquires its national network of fresh and harvested fly ash, pozzolans, synthetic gypsum and green cement operations.
asap.work, French tech enabled recruitment company for construction, acquired JUST CONSTRUCTION, a UK based specialist construction recruiter focused on the US market. More here.
News
The Invisible Back Office for Field-Service Contractors
Big Tax Law Change for AEC, Manufacturing and Innovative Companies
Accelerating the delivery of tech-focused capital projects (McKinsey)
Indonesia introduces innovative earthquake-proof building design
Indonesia’s Meteorology, Climatology and Geophysics Agency (BMKG) has introduced a new earthquake-resistant building design.
The new technology is capable of withstanding tremors up to magnitude 8.8.
New York Is the Front Line of the War on Cities
The U.S. Clean Energy Manufacturing Boom Is Sputtering
Since President Donald Trump took office, at least 34 factories or mineral refineries, totaling more than $30 billion in investment, have been paused, delayed, or canceled.
Kathy Hochul’s Nuclear Vision Faces Big Questions and Bottlenecks
Building nuclear power will test whether New York state is still capable of constructing megaprojects as it has done in the past.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.
The Testfit round is from 2022, right?