This chapter examines Slovakia’s progress in meeting the Kyoto Protocol target, reducing the energy intensity of its economy, and increasing the use of renewable-energy sources. It assesses the factors underlying this progress, and the challenges facing Slovakia to meet its 2020 targets. The chapter reviews the institutional and policy framework for climate change mitigation and the main policy measures put in place to reduce greenhouse gas emissions, in particular from electricity and heat generation, energy use and transport. The extent to which market mechanisms (such as emissions trading, energy prices and taxes, and road charges) are used to provide incentives to reduce emissions is also discussed.