The paper firstly summarizes the approach and findings to evaluate the effectiveness of environmental policies around the globe as it was undertaken in the Sixth Global Environment Outlook (GEO-6;2019). The data gathered in GEO-6 reveals (1) a high level of institutional innovation, increasingly from the global south, (2) a lack of environmental policy integration (3) spatial and temporal dynamics and (4) the importance of the policy design. Current environmental policies are, however, not sufficient to effectively preserve natural resources and limit emissions to a sustainable level. This has led to a general recognition of the need for a transformative change that goes beyond mere improvements of efficiency. The second part of the paper analyses how environmental policies could contribute in shaping such transformations to sustainability. Transformative policies can be built on social innovations and experimentation with institutional innovation. This is compatible with incremental and sectoral policy making. However, given the complexity and stability of social systems, the outcomes of such policies are uncertain. This is why we argue for strengthening conventional, strategic environmental policies and complementing rather than replacing them with transformative policies.