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Globally, climate change is a challenge for the dairy sector and its effects are expected to have important consequences on the environmental performance of the dairy products value chains. At the same time, this sector significantly contributes to global warming and other environmental impacts. This paper addresses this twin challenge from a life cycle perspective, i.e. covering from dairy farms, dairy factory, distribution and retail, to consumption. To do so, literature reviews were done on the contribution of the sector to climate change and on the biophysical impacts of climate change on the dairy sector in the near term in Europe. Both reviews were linked to qualitatively analyse the interaction and connect in a matrix the biophysical impacts caused by the effects of climate change on the environmental performance of the sector. Not surprisingly, dairy farms were identified as the major contributor to the total greenhouse gas emissions across the dairy value chains but also as the most vulnerable stage to climate change. Depending on the region, the dairy sector will face opportunities but also threats such as significant cows' heat stress, crop cultivation variability, on-farm water availability, cows' diseases, crop pests' pressure and product safety risk, which is associated with product losses and waste. Measures will be needed to mitigate them but with an environmental cost. The clear definition of the dairy sector-climate change interaction is the starting point to begin preparing this sector for a near-future under climate change conditions. • Climate change effects influences the dairy sector's environmental performance. • Dairy farm stage is the main contributor to climate change and the most vulnerable. • The European dairy sector will experience unequally the opportunities and threats. • Climate change will raise food safety risk, raw milk losses and dairy product waste. [ABSTRACT FROM AUTHOR]