The construction sector in Sweden stands for about 22% of total greenhouse gas emissions. Reducing the embodied carbon in new buildings can be achieved by a transition to bio-based insulation materials since conventional insulation accounts for about 20% of the total embodied carbon. Additionally, bio-based materials are hygroscopic, i.e. they absorb moisture from the air which releases heat. Previous studies have shown that this is positive for the thermal performance of a building. Furthermore, hygroscopicity is advantageous in case of temporary moisture loads. We will study the function and use of biobased insulation materials, and, by use of chemical modification, examine how the hygroscopic properties can be tailored to further enhance a building’s energy performance and robustness to temporary moisture loads. The project is a collaboration between Lund University, University of Copenhagen and stakeholders from the construction sector included in the reference group.