While some analysts consider environmental standards as a valuable mechanism for improving production efficiency, others argue that compliance with those standards is an additional and costly burden that affects competitiveness. This study examines the relationship between the two factors by assessing the scope of the impact of environmental standards on competitiveness, and provides examples from both sides of the debate. Additionally, the report stresses on the importance of evaluating the scope and scale of impact of the two factors in order to provide policymakers with a clearer image in formulating sustainable development policies.