This study stems from the hypothesis that there are gaps at local, national and regional levels concerning policy making and project formulation, related to climate change, sustainable development and human security. This chapter focuses on the South Asia region, with particular emphasis on India and Bangladesh, as these are two countries faced with high vulnerability to climate change. It is clear that the increased level of projected growth in the region needs to tread down a path towards a low carbon economy, in order to face up to the challenges of climate change. Inadequate regional cooperation, energy insecurity and weak governance are identified as key impediments to achieving a low carbon economy in South Asia. However, some progress has been made through the formation of climate change specific policy, establishment of forums for regional cooperation, and private sector initiatives, promoting sustainable practices. The step from policy and ideas to action needs to be taken. Barriers such as, political instability, lack of economic integration and limited natural resources need to be acknowledged and surmounted before any real progress towards sustainable development in the region can be achieved. The promotion of a low carbon economy is touted as a key step in the right direction. Emerging from this literature review is a series of examples and mechanisms that may help in the formulation of coordinated and integrated policy and mechanisms that would be needed to see real progress towards low carbon economy and an effective response to the challenges derived from climate change in South Asia.