Energy performance policy in the building sector - such as is described by EU Directive known as EPBD - has the aim of reducing energy consumption in buildings. Given the importance of the development of innovations in energy technology, and a transition to a sustainable energy supply system, it is necessary that policy instruments for energy conservation in the building sector stimulate the development and diffusion of innovations. This publication contributes to knowledge about the content of energy performance policy and concludes that the effect of energy performance policy in encouraging innovation is limited. The study of the innovation system of the Dutch construction industry identifies how the project-based nature of the construction industry is an obstacle to ‘learning-rich’ collaboration between the various stakeholders. The study contributes to the discussion about the impact of government policy for energy conservation in the building sector, in the context of climate change policy.