The building sector is responsible for a substantial part of energy use and green house gas emissions in Europe. This report explores driving forces and barriers to improved energy performance of buildings, using the Swedish building sector as a case. The development of energy performance of buildings in Sweden from 2000 until 2006 is explored by applying a threefold understanding of energy performance of buildings: substitution from fossil fuels to renewable energy, conversion from electrical heating to thermal energy and reduction in energy demand. 
Three explanatory approaches are used to analyse driving forces and barriers to improved energy performance: the techno-economic approach stresses the physical aspects of infrastructure and technologies, the institutional approach emphasizes the role of institutional factors, while the regulative approach focuses on formal rules and laws. The study concludes that all factors have promoted substitution of fossil fuels with renewable energy, while they have prevented conversion from electrical heating to thermal energy and reduction in energy demand.