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Within Europe and North America the integration of environmental concerns into agriculture has become a domain almost exclusively defined by public policy. In this paper it is contended that we are currently witnessing a new direction in attempts to reconcile agricultural production and environmental protection, in which the market is playing an increasingly important role. The paper takes as its focus the rapidly expanding number of what are termed ‘market-oriented initiatives for environmentally sustainable food production’ (MOIs), in which the incentive for food producers to manage the environment positively comes directly through the market. The number of MOIs, in both Europe and North America, has proliferated recently, although some have been established for many years. However, both older and newer forms of these MOIs appear to be the focus of a new rural development, food quality, and sustainable farming agenda. In an attempt to make a contribution to this emergent debate, this paper sets out to address the extent to which these MOIs are capable of contributing to the development of more environmentally sustainable food production. In this paper we consider the drivers of this new approach, review the various types of MOI that are emerging in both Europe and North America, and examine the different approaches to environmental management that MOIs adopt. The paper also offers a reflection upon the potential contribution of MOIs to the delivery of environmental goods in food production and the implications of this for public sector approaches. [ABSTRACT FROM AUTHOR]