Methane emissions from cattle account for a large proportion of greenhouse gas emissions from the agricultural sector. At the same time, by grazing semi-natural grasslands, cattle are central for biodiversity conservation in Sweden. While policy instruments can incentivize the use of cattle feed that reduce methane emissions, it is unclear how this would affect the grazing of semi-natural grasslands. The aim of this project is to investigate how policy instruments can be designed to cost-effectively reduce methane emissions without compromising the grazing of semi-natural grasslands. The project will be completed in 2023.