The concentrations of green house gases (GHG) in the atmosphere began in pre-industrial times and it continues to increase. This could result into an alarming increase in temperature of up to 5.4 oC by year 2100 due to a net global annual GHG emission of H 4.5-6.5 Gt C equivalent. About 18% of the world’s GHG are contributed by livestock and related activities on grasslands that are spread over almost 35 million Km2.These grasslands give livelihood to over a billion people most of who are poor. Twenty to 70% of the land surface area is degrading often due to overgrazing caused by increased demand for meat and milk, among other factors. A right set of policies that incentivises appropriate management of the grasslands have the potential to reduce up to 30% of the GHG globally. This can be achieved by mainly focussing on reduction in deforestation for pastures, silvo-pastoral improvements and reduction in enteric fermentation in animals, and appropriate manure and fertilizer management, especially on extensive grasslands. Reduction in GHG emissions will also depend upon the level of resource use efficiencies achieved, added intensification to reduce pressure on grasslands, and success or failure of appropriate market and regulatory policy interventions