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This lecture covers the definitions of Indoor Environmental Quality and Indoor Climate, emphasizing the importance of understanding indoor climate to influence building energy use, costs, and health. It explores the enormous implications of indoor climate on health, cognitive performance, energy use, and costs. The lecture delves into the fundamentals of heat, air, and moisture, as well as the Psychometric Chart, providing insights into heat transfer in buildings and the basics of energy and heat. It also discusses the impact of air humidity on indoor air quality, the importance of units in building engineering, and the processes useful for indoor climate, such as heating, cooling, and humidification. The lecture concludes with an overview of the evolution of buildings and the different modes of heat transfer.