Croatia needs to reduce its greenhouse gas emissions by 5% by 2012, as agreed in the Kyoto Protocol. A new energy strategy is necessary to meet this target. If current trends continue, Croatia will likely exceed the Kyoto target due to high energy demand. Different scenarios for energy development were compared, with the most cost-effective option involving a mix of coal and gas power plants. However, simply focusing on electricity generation will not be enough to meet the Kyoto target. Transport sector emissions are expected to remain high without global technology innovations. Avoiding new fossil fuel power plants and decommissioning old ones could help reduce emissions, but more action is needed to reach the Kyoto goal.