Asian economies are highly dependent on an uninterrupted supply of energy and share common interests as major energy consumers. However, since the turn of the century, regional security dynamics have deteriorated both in terms of prospects for energy and environmental security and broader regional cooperation. The focus of this chapter is on Asia’s major energy security issues and challenges, namely (1) regional perceptions and competitive energy security approaches; (2) regional geography and market fragmentation; (3) bilateralism and strategic competition; (4) fossil fuel subsidies; and (5) the demand for coal and environmental sustainability. The chapter proposes avenues for achieving greater regional energy cooperation in light of common energy and climate challenges.