Glucagon is a peptide hormone produced by the alpha cells of the pancreas that plays a crucial role in glucose metabolism. It works primarily to increase blood glucose levels by promoting glycogenolysis, the breakdown of glycogen to glucose in the liver, and gluconeogenesis, the formation of glucose from non-carbohydrate sources. This hormone acts as a counter-regulatory agent to insulin, maintaining energy homeostasis and ensuring that the body has a continuous supply of glucose during periods of fasting or low carbohydrate intake.