Climate change is taking a toll on governments around the world as it is a challenge to determine the most effective environmental policies to promote eco-innovation. This paper investigates the environmental developments that
have taken place in Malaysia to address the challenges and opportunities to promote eco-innovation. Past and present literature was qualitatively analyzed to prepare the environmental review for this study. The results suggest that Malaysia is implementing more superior environmental policies to promote eco-innovation. Command and control-based approach is slowly being replaced with guided self-regulation approach and cradle-to-cradle principle. The evidence suggests several shortcomings where the large
industries are not given adequate focus under the wnvironmental agenda and a holistic eco-innovation framework is yet to emerge
