diff --git a/packages/backend-common/src/config.ts b/packages/backend-common/src/config.ts
index d63f5171d3..2295a8f943 100644
--- a/packages/backend-common/src/config.ts
+++ b/packages/backend-common/src/config.ts
@@ -23,6 +23,7 @@ import { loadConfig } from '@backstage/config-loader';
 export async function loadBackendConfig() {
   const paths = findPaths(__dirname);
   const configs = await loadConfig({
+    env: process.env.NODE_ENV,
     rootPaths: [paths.targetDir, paths.targetRoot],
     shouldReadSecrets: true,
   });
diff --git a/packages/cli/src/commands/app/build.ts b/packages/cli/src/commands/app/build.ts
index 81eec7a32b..12ea362063 100644
--- a/packages/cli/src/commands/app/build.ts
+++ b/packages/cli/src/commands/app/build.ts
@@ -22,6 +22,7 @@ import { buildBundle } from '../../lib/bundler';
 
 export default async (cmd: Command) => {
   const appConfigs = await loadConfig({
+    env: 'production',
     rootPaths: [paths.targetDir, paths.targetRoot],
   });
   await buildBundle({
diff --git a/packages/cli/src/commands/app/serve.ts b/packages/cli/src/commands/app/serve.ts
index f4069ca9fa..b372663f09 100644
--- a/packages/cli/src/commands/app/serve.ts
+++ b/packages/cli/src/commands/app/serve.ts
@@ -22,6 +22,7 @@ import { serveBundle } from '../../lib/bundler';
 
 export default async (cmd: Command) => {
   const appConfigs = await loadConfig({
+    env: 'development',
     rootPaths: [paths.targetDir, paths.targetRoot],
   });
   const waitForExit = await serveBundle({
diff --git a/packages/cli/src/commands/backend/dev.ts b/packages/cli/src/commands/backend/dev.ts
index 8d5e6339dc..cbea2c60cc 100644
--- a/packages/cli/src/commands/backend/dev.ts
+++ b/packages/cli/src/commands/backend/dev.ts
@@ -22,6 +22,7 @@ import { serveBackend } from '../../lib/bundler/backend';
 
 export default async (cmd: Command) => {
   const appConfigs = await loadConfig({
+    env: 'development',
     rootPaths: [paths.targetDir, paths.targetRoot],
   });
   const waitForExit = await serveBackend({
diff --git a/packages/cli/src/commands/plugin/export.ts b/packages/cli/src/commands/plugin/export.ts
index c3beb8b23e..6de3e14c59 100644
--- a/packages/cli/src/commands/plugin/export.ts
+++ b/packages/cli/src/commands/plugin/export.ts
@@ -22,6 +22,7 @@ import { buildBundle } from '../../lib/bundler';
 
 export default async (cmd: Command) => {
   const appConfigs = await loadConfig({
+    env: 'production',
     rootPaths: [paths.targetDir, paths.targetRoot],
   });
   await buildBundle({
diff --git a/packages/cli/src/commands/plugin/serve.ts b/packages/cli/src/commands/plugin/serve.ts
index 989cf92523..c23ae060aa 100644
--- a/packages/cli/src/commands/plugin/serve.ts
+++ b/packages/cli/src/commands/plugin/serve.ts
@@ -22,6 +22,7 @@ import { serveBundle } from '../../lib/bundler';
 
 export default async (cmd: Command) => {
   const appConfigs = await loadConfig({
+    env: 'development',
     rootPaths: [paths.targetDir, paths.targetRoot],
   });
   const waitForExit = await serveBundle({
diff --git a/packages/config-loader/src/lib/resolver.ts b/packages/config-loader/src/lib/resolver.ts
index c1f95cdef7..2ee200fbd0 100644
--- a/packages/config-loader/src/lib/resolver.ts
+++ b/packages/config-loader/src/lib/resolver.ts
@@ -20,6 +20,8 @@ import { pathExists } from 'fs-extra';
 type ResolveOptions = {
   // Root paths to search for config files. Config from earlier paths has higher priority.
   rootPaths: string[];
+  // The environment that we're loading config for, e.g. 'development', 'production'.
+  env: string;
 };
 
 /**
@@ -35,11 +37,9 @@ type ResolveOptions = {
 export async function resolveStaticConfig(
   options: ResolveOptions,
 ): Promise<string[]> {
-  const env = process.env.NODE_ENV ?? 'development';
-
   const filePaths = [
-    `app-config.${env}.local.yaml`,
-    `app-config.${env}.yaml`,
+    `app-config.${options.env}.local.yaml`,
+    `app-config.${options.env}.yaml`,
     `app-config.local.yaml`,
     `app-config.yaml`,
   ];
diff --git a/packages/config-loader/src/loader.ts b/packages/config-loader/src/loader.ts
index ba3c615ff7..27df7ac831 100644
--- a/packages/config-loader/src/loader.ts
+++ b/packages/config-loader/src/loader.ts
@@ -28,6 +28,9 @@ export type LoadConfigOptions = {
   // Root paths to search for config files. Config from earlier paths has higher priority.
   rootPaths: string[];
 
+  // The environment that we're loading config for, e.g. 'development', 'production'.
+  env: string;
+
   // Whether to read secrets or omit them, defaults to false.
   shouldReadSecrets?: boolean;
 };