This policy brief examines Mongolia’s Livestock Head Tax (LHT) Law—adopted in 2020 and in force since 2021—as a key opportunity to advance climate action in the livestock sector. Introduced to address growing pressure on pastureland, the LHT aims to regulate herd sizes through economic incentives while generating revenue to strengthen pasture management, improve herd structure, and enhance livestock product quality. As Mongolia considers reforms to the law’s implementation in 2025, informed by early experience and complementary legislation, this brief outlines how an improved LHT framework can support national climate priorities under Vision 2050, the NDC, and the NAP.