Three years of trials have confirmed that farmers have a way of significantly reducing nitrous oxide, one of the greenhouse gases from livestock.
However a practical way of cutting the main agricultural greenhouse gas - methane - continues to elude scientists.
The research, carried out in four dairying regions, found that the active ingredient in the nitrification inhibitor Eco-N, halved nitrous oxide emissions from urine patches in pasture.
It also reduced nitrogen leaching from urine patches by about 40% and in grazed pasture by more than 20%.
Pastoral Greenhouse Gas Research Consortium manager Mark Aspin says the trials have confirmed the effectiveness of the only practical tool farmers have so far, for reducing emissions from livestock farming.
He says the main part of the consortium's focus is to find some cost effective solutions for methane and although it has some good leads more time is needed.