In Sweden, 90% of multifamily buildings utilize district heat and a large portion is in need of renovation. The aim is to analyze the impact of renovating a multifamily building stock in a district heating and cooling system, in terms of primary energy savings, peak power demands, electricity demand and production, and greenhouse gas emissions on local and global levels. The study analyzes scenarios regarding measures on the building envelope, ventilation, and substitution from district heat to ground source heat pump. The results indicate improved energy performance for all scenarios, ranging from 11% to 56%. Moreover, the scenarios present a reduction of fossil fuel use and reduced peak power demand in the district heating and cooling system ranging from 1 MW to 13 MW, corresponding to 4–48 W/m2 heated building area. However, the study concludes that scenarios including a ground source heat pump generate significantly higher global greenhouse gas emissions relative to scenarios including district heating. Furthermore, in a future fossil-free district heating and cooling system, a reduction in primary energy use will lead to a local reduction of emissions along with a positive effect on global greenhouse gas emissions, outperforming measures with a ground source heat pump.