‘Climate-smart’ is the term coined to define agricultural systems that are resilient to climate change, and offer efficient emissions mitigation potential without compromising on productivity, food security and livelihoods. As part of the implementation of such systems, this study developed a Marginal Abatement Cost Curve (MACC) for greenhouse gas emission mitigation for a grassland system in Inner Mongolia, China. We identified two baseline emission scenarios and three abatement measures, namely, shorter lambing time, prohibited grazing, and reduced stocking rates. The study region showed a high and costefficient abatement potential of 62.5 and 32 Kilotonnes (Kt) of CO2eq for each baseline, respectively and each Abatement measure lead to cost savings for the herders. Reduced stocking rates provided the largest mitigation potential. Sensitivity analysis showed how increasing input and livestock product prices have consequences for measure adoption.