Working Report 2 follows from Working Report 1 where in the latter the background and concept to the Nationally Appropriate Mitigation Action (NAMA) approach for livestock/grassland management is discussed. A full discussion on the development and characteristics of a livestock/grassland NAMA is found in the paper "Nationally Appropriate Mitigation Actions for Grassland and Livestock Management in Mongolia" (Hannam and Tennigkeit). Working Report 2 discussed the legal and policy framework to support a livestock/grassland NAMA. Given the social, economic and ecological significance of the grassland/livestock industry to Mongolia, the policy, legal and institutional system to manage the climate change impacts on the grassland and the livestock industry should be developed in conjunction with an overall national climate change management system for Mongolia.