The Greek energy market is dominated by the use of fossil fuels. In 2003, oil and coal provided the majority of total primary energy supply (57% - 30%) followed by natural gas (6.7%), renewable energy sources (5.4%) and electricity (0.6%). Lignite-fired stations accounted for 60% of total electricity production (58.2 TWh) in 2003, while 15% came from oil, 9% from hydropower, 15% from natural gas and 1% from other renewable energy sources. In the same year, the final energy consumption in Greece reached 23.1 Mtoe, with 75% increase in the residential and tertiary sector, 34% in the transport sector and 18% in the industry sector compared to 1990 levels. The majority of GHG emissions (54.2%) in 2003 derived from energy industries with CO2 emissions representing a total increase of 32% from 1990 to 2003. On the other hand, Greece has committed to limit the increase of its greenhouse gas emissions for the period 2008 – 2012 to 25% compared to 1990 levels under the European Union Burden Sharing Agreement to the Kyoto Protocol. Thus, the 2nd National Climate Change Program 2000-2010 was adopted in 2003 comprising measures and actions aimed at the reduction of emissions in sectors not covered by the emissions trading Directive. An overview of the Operational Programme “Competitiveness” (OPC) of the Ministry for Development under the 3rd Community Support Framework for the period 2000-2006 will be presented. This programme with a total budget of €6.6 billion (of which €1.29 billion comes from public funds) constitutes the main financial instrument for the promotion of investments which contribute to the restriction of GHG emissions while increasing the competitiveness of the Greek economy. Finally, the research priorities for funding in the energy sector, their respective funding level as well as the potential results of the projects approved will be reported.