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Sweden has significantly decarbonised its heating sector, with fossil fuels now accounting for less than 5% of heating energy. This was achieved through the expansion of district heating and heat pumps, supported by carbon taxes introduced in 1991 and a pragmatic approach to shared infrastructure. However, the system is now characterised by a 'supply-dominated' lock-in, where the focus remains on maintaining production rather than reducing demand. This is evidenced by high average indoor temperatures (21.2°C to 22.3°C) and resistance to more stringent energy efficiency standards. Additionally, an increasing reliance on waste incineration has led to over-capacity and a dependency on imported waste, potentially conflicting with EU directives. The report warns that rising temperatures from climate change and stricter EU energy performance requirements will further decrease heat demand, necessitating a shift toward demand-reducing technologies and increased integration of industrial waste heat.