This paper addresses the state of carbon governance, i.e., measurement, reporting and control of greenhouse gas (GHG) emissions, at the sub-national level in China, India, Indonesia and the Philippines, and discusses the possibility of utilising a carbon crediting mechanism to extend low carbon development policies at the sub-national level and needed capacity development towards that end. National governments initiated GHG inventory development at sub-national government level in China and Indonesia, while national governments have not commenced such initiatives yet in India and in the Philippines. A limited number of sub-national governments have developed inventories under the auspices of international organisations in the Philippines, and researchers are mainly estimating emissions at the sub-national level in India. There are currently no carbon reporting and control mechanisms at the sub-national level. However, low carbon development policies and measures in the sectors of transport, commercial buildings, and household and waste have been identified in advanced provincial or city governments selected for study. These policies and measures could be enhanced further by pursuing the possibility of issuing credits based on existing methodologies. Yet, even advanced sub-national governments do not have sufficient personnel and organisational capacity for carbon management. It is therefore desirable and realistic to adopt a policy of capacity development not only for sub-national governments, but also for private sector corporations that already have experience, in order to enhance carbon governance at the sub-national level in Asian developing countries.