The urgency to address the adverse impacts of climate change on livelihoods and ecosystems has seen an increase in global driven initiatives. However, shifting vulnerabilities associated with land use resource based adaptation and maladaptive feedback loops they create have been given low attention. Policy discourses that frame adaptation as a local responsibility and bias towards reducing industrial Greenhouse gas (GHG) emissions at the expense of Agricultural emissions across scale are thought to account for the undesirable situation. This calls for a reflective policy framework and climate policy innovation. We provide counter arguments using Drivers, Pressure, State, Impact, Response (DPSIR) model and telecoupling principles to suggest use of resilience as an integrative lens in visualising the proposal. Using a case study on resource constrained smallholder dairy production systems, western Kenya, we analyse the critical issues in the context of decision making and environmental externalities. The effect of price risks on dairy cattle feeding strategies and ultimately carbon footprints and ecoefficiencies were examined through methane simulation and gross margin analysis (GM). The lowest ecoefficiency was associated with exclusively local coping strategies i.e. Maize Stover (Ms), while the highest ecoefficiency was observed in feeding strategies that utilise external resources and/or legume fodders. We conclude that management of externalities need to capture institutional, economic processes and incentive systems, as well as organizational and policy coherence to shape the interests and behaviour of individual land user. In particular, policy innovation should focus on price and market risks as critical factors that mediate actor decision making at implementation level as they impact GHG emissions which transcend individual decision boundaries.