The United Nations Industrial Development Organization’s (UNIDO) portfolio of technical cooperation projects changed radically between 1992 and 2004. In 1992, industrial-development-related projects constituted 98% of the portfolio in monetary terms, and environment-related projects 2% while, in 2004, the former constituted 43% and the latter 57%. However, the larger share of the environment-related projects in 2004 was only marginally, if at all, linked to UNIDO’s industrial development agenda. A compelling explanation for this radical change in the organization’s technical cooperation portfolio is provided by a model of strategic choice that draws on resource dependency and institutional approaches and that allows for staff strategic actions. Two factors, UNIDO’s financial and confidence crisis in the 1990s and an organizational culture wedded to industrial development, shaped UNIDO’s strategic responses, which, for the most part, did not integrate environmental concerns into industrial development projects and programs as instructed by its principal governing body.