The rapid industrialisation in the Asia-Pacific Region has brought about an unprecedented increase in the consumption of energy to power the economic growth that has been created in its wake. This has in turn raised security of supply issues relating to the sustainability of fossil fuel sources and concerns about the negative environmental externalities of fossil fuel use such as greenhouse gas emissions and its attendant climate change impacts. Indeed this region accounts for approximately 60 per cent of global energy-based CO2 emissions. The increased consumption has to a large extent been spurred on by generous subsidies provided for fossil fuel use. Whilst phasing out these subsidies would go a long way in bringing about the internalisation of the external environmental costs, there are socio-political and economic barriers to overcome. This paper examines the experience of Australia, China, Indonesia, and Singapore. It critically analyses the extent to which the regulatory and fiscal framework governing the fossil fuel sector can be adapted to address the challenges of increasing investment in the development and uptake of cleaner energy sources. The paper also appraises the experience of other jurisdictions with a view to ascertaining the extent to which they can be adapted to address the challenges faced by countries in the region.