Amidst growing concerns about the impact of agriculture on the environment, the Common Agricultural Policy (CAP) has been overhauled to prioritize sustainability in European agriculture. This chapter delves into the details of the CAP’s shift, analyzing the elevation of environmental concerns within the policymaking framework. Drawing upon concepts from the field of political science that examine the process of policy change, like those found in historical institutionalism, the study explores how the CAP’s move toward “greening” is redefining the trajectory of EU and global agriculture. Throughout the analysis, the study highlights the key role played by initiatives such as the Green Payment Scheme and other measures in promoting measurable environmental and climatic criteria. For example, measures aimed at preserving carbon-rich soils and enhancing water resources can have positive impacts on the environment. However, the study also recognizes that these measures may limit the power of farmers. In addition, the study underscores the EU’s commitment to addressing climate change and sustainable development challenges and how conditionality is being used to link funding to results. Upon analyzing the CAP’s shift, the study argues that the new architecture of the policy represents a more flexible and rational approach. By incorporating both CAP pillars, encouraging collaboration with compatible policies, and allowing for greater adaptability in response to the unique circumstances and objectives of each Member State, the CAP is taking significant steps toward sustainability and climate action. These insights into the significance and implications of the CAP’s shift toward sustainability offer valuable recommendations for future policy developments, emphasizing the need to balance environmental concerns with the needs of rural workers and other stakeholders.