This paper explores the growing significance of sustainable development evident in recent global concerns for the worsening conditions of environmental degradation and natural disasters. Despite the massive proliferation of international conventions, regional agreements, and national–local initiatives and the creation of numerous institutions at all levels, there are relatively disappointing outcomes regarding environmental sustainability. Next, the paper examines the main causes of such environmental underperformance, highlights the needs for making appropriate institutional choices, and emphasizes the central role of the state as the leading stakeholder in dealing with environmental governance. Finally, among the major formations of the state, it draws attention to the comparative advantages of the developmental state in terms of its composition, autonomy, embeddedness, and capacity and highlights its potential for more effective performance to achieve sustainable development.