Energy is a key, but limited and unevenly distributed resource necessary for the development of the society. It is also one of the basic sources of negative climate trends and pollution. In this context, the European Union has recognised energy efficiency as a way to achieve a diminution of ecological and energy vulnerability and a higher resistance to climate changes. Directives, opinions and recommendations have led to a number of regulations and measures implemented by the member states into their legislation and adopted as legal obligations with the fulfilment deadline in 2020. To efficiently apply energy efficiency, all the authority levels need to engage and cooperate, while the local authorities, since they know the local region and its community best, should take the role of the bearer of promotion and implementation of investments into different forms of energy efficiency. The research goal was to determine the level of preparation held by cities in the Republic of Croatia in regard to the National Energy Efficiency Programme 2008 – 2016 and their potential in the promotion of the energy efficiency policy. The empirical analysis has shown that the approach of Croatian cities toward the energy efficiency problem is still insufficiently efficient, although there is considerable potentialfor the achievement of energy saving measures and the contribution to environmental protection and the European Union energy aims. This can be achieved by an optimal combination of financial sources, efficient planning, professional human capacities and the cooperation of all relevant stakeholders. Green, compact and energy-efficient cities can give a key contribution to the green growth and energy aims on both the national and European Union level.