diff --git a/lib/interface/cli/commands/hybrid/init.cmd.js b/lib/interface/cli/commands/hybrid/init.cmd.js
index 34a20c03f..ed4ea696d 100644
--- a/lib/interface/cli/commands/hybrid/init.cmd.js
+++ b/lib/interface/cli/commands/hybrid/init.cmd.js
@@ -467,6 +467,27 @@ const initCmd = new Command({
             condition: !!dockerRegistry,
         });
 
+        // update env vars
+        installationPlan.addStep({
+            name: 'update runtime environment with env vars',
+            func: async () => {
+                const reName = installationPlan.getContext('runtimeName');
+                const re = await sdk.runtimeEnvs.get({ name: reName });
+                let currentEnvVars = _.get(re, 'runtimeScheduler.envVars', {});
+                const envVarsAsObject = envVars.reduce((acc, current) => {
+                    const parts = current.split('=');
+                    // eslint-disable-next-line prefer-destructuring
+                    acc[parts[0]] = parts[1];
+                    return acc;
+                }, {});
+                currentEnvVars = _.merge(currentEnvVars, envVarsAsObject);
+                const body = _.set(re, 'runtimeScheduler.envVars', currentEnvVars);
+                await sdk.runtimeEnvs.update({ name: reName }, _.merge(re, body));
+                console.log(`Runtime environment "${colors.cyan(reName)}" has been updated with env vars`);
+            },
+            condition: !!envVars,
+        });
+
         // set runtime as default
         installationPlan.addStep({
             name: 'set new runtime as default',
diff --git a/package.json b/package.json
index 0e74960ac..0140bf4d4 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "codefresh",
-  "version": "0.71.6",
+  "version": "0.71.7",
   "description": "Codefresh command line utility",
   "main": "index.js",
   "preferGlobal": true,