The prosperity of New Zealand (NZ) rests to a large extent on agriculture. Although our total greenhouse gas (GHG) emissions are unusually small for a developed nation, agricultural emissions make up almost half of the total emissions from NZ. Emissions from NZ agriculture have been rising at close to 1% a year since 1990 and by 2010, the midpoint of the first commitment period of the Kyoto Protocol, they are projected to be 7.2 Mt per year higher than the 1990 baseline. This excess has a potential cost of over NZ$0.5 billion. Despite the continued rise in absolute emissions, emissions intensity, the amount of GHG produced per unit of food produced, has been dropping and the emissions intensity of NZ agriculture goods compares favourably with that of other developed nations. The NZ agricultural sector has actively engaged in the search for cost-effective mitigation solutions and, in partnership with the government, has funded research through the Pastoral Greenhouse Gas Research Consortium (PGGRC). The PGGRC has been in existence since 2002 and has invested NZ$16 million in research into reducing methane and nitrous oxide emissions from pastoral agriculture. The structure of this research funding body, its objectives, achievements and future challenges are briefly outlined.