Abstract The food supply chain is currently challenged by the imperative to sustainably feed the increasingly expanding population while simultaneously striving to meet global net-zero emission targets. The dairy sector is widely considered as a carbon-intensive industry, contributing to significant greenhouse gas (GHG) emissions thereby exacerbating global warming. Here, we first summarize recent studies on determining GHG emissions of various dairy products, which suggests that farms are the primary emission hotspots in the dairy supply chain. Next, the vital role of novel techniques and emerging strategies to reduce carbon emissions in the dairy industry is emphasized at both local- and systematic levels. The implementation of targeted techniques at each stage, along with policy initiatives such as carbon pricing, plant-based alternatives, international standards and clean air act, play a vital role in establishing global optimization to mitigate climate warming. Despite these progresses, standards and guidelines of emission reduction for the dairy industry are currently lacking, which calls for continuous efforts to fill the gap. Graphical Abstract