The concept of environmentalism is constantly growing as new customer demands and regulations are introduced. Preventive measures on production system design are lacking as the environment is being overlooked in capital investment projects of production equipment and systems. The objective of this study was to explore the need for environmental sustainability in capital investment projects and develop a methodology to implement resource efficiency and circularity. It is identified that the design phase of capital investment projects has a great opportunity for decreasing environmental impact in future operations. However, strategy deployment of environmental sustainability to project level is lacking, justifying the urgency for additional environmental approaches. The Green Design methodology developed introduces environmental sustainability to capital investment projects by utilizing several green-lean and circular tools. The tools are applied through identifying, evaluating, implementing, and follow-up on environmental improvements.