Greenhouse gas (GHG) emissions from reservoirs are responsible for at most 2% of the overall warming effects of human activities. This study aimed at incorporating the GHG emissions of a reservoir (with irrigation/sugar production as its primary purpose), into the carbon footprint of sugar produced from irrigated sugarcane. This study adopts a life-cycle assessment (LCA) approach and encompasses the cradle-to-gate aspect of the international organization of standardization ISO 14040 guidelines. Results show that total carbon footprint of refined sugar could be as high as 5.71 kg CO₂-eq/kg sugar, over its entire life cycle, depending on the priority of purposes allocated to a reservoir and sugarcane productivity. Findings also reveal that the dammed river contributes the most to GHG emissions 5.04 kg CO₂-eq/kg sugar, followed by the agricultural stage 0.430 kg CO₂-eq/kg sugar, the sugar factory 0.227 kg CO₂-eq/kg sugar, and lastly the transportation stage 0.065 kg CO₂-eq/kg sugar. The sensitivity analysis shows that carbon footprint CF of sugar production is largely influenced by the rate of biomass decomposition in the impounded reservoir over time, followed by the reservoir drawdown due to seasonal climatic fluctuations. Significant amounts of GHG emissions are correlated with the impoundment of reservoirs for water resource development projects, which may account for up to 80% of total GHG emissions to the reservoir’s primary purpose. Sugar production expansion, coupled with allocating more functions to a reservoir, significantly influences the CF of sugar per service purpose. This study is an indicator for policymakers to comprehend and make plans for the growing tradeoffs amongst key functions of reservoirs.