diff --git a/containerd-shim-spin/src/engine.rs b/containerd-shim-spin/src/engine.rs
index 8e9d33d7..34b6f8c4 100644
--- a/containerd-shim-spin/src/engine.rs
+++ b/containerd-shim-spin/src/engine.rs
@@ -43,18 +43,9 @@ const OCI_LAYER_MEDIA_TYPE_WASM: &str = "application/vnd.wasm.content.layer.v1+w
 /// Expected location of the Spin manifest when loading from a file rather than
 /// an OCI image
 const SPIN_MANIFEST_FILE_PATH: &str = "/spin.toml";
-/// Prefix for Spin runtime environment variables This prefix indicates that the
-/// environment variable should not be set in a component's environment and
-/// should instead be reinjected into the shim's environment without the prefix.
-/// The environment variable with the prefix will be retained in the shim's
-/// environment.
-const SPIN_RUNTIME_ENV_VAR_PREFIX: &str = "SPIN_";
 /// Known prefix for the Spin application variables environment variables
 /// provider.
 const SPIN_APPLICATION_VARIABLE_PREFIX: &str = "SPIN_VARIABLE";
-/// When set, ensures that the shim does not set any container environment
-/// variables in the Spin application.
-const SPIN_DISABLE_CONTAINER_ENV_INJECTION_ENV: &str = "SPIN_NO_CONTAINER_ENV_INJECTION";
 
 #[derive(Clone)]
 pub struct SpinEngine {
@@ -206,7 +197,11 @@ impl SpinEngine {
     }
 
     async fn wasm_exec_async(&self, ctx: &impl RuntimeContext) -> Result<()> {
-        let app_env_vars = get_app_env_vars();
+        // Create a duplicate of the environment variables with the application
+        // variables environment variable provider default prefix. This makes
+        // container environment variables accessible to Spin application
+        // components that explicitly allow them in the Spin manifest.
+        prefix_env_vars(SPIN_APPLICATION_VARIABLE_PREFIX);
         // create a cache directory at /.cache
         // this is needed for the spin LocalLoader to work
         // TODO: spin should provide a more flexible `loader::from_file` that
@@ -220,10 +215,7 @@ impl SpinEngine {
         let resolved_app_source = self.resolve_app_source(app_source.clone(), &cache).await?;
         let trigger_cmds = trigger_command_for_resolved_app_source(&resolved_app_source)
             .with_context(|| format!("Couldn't find trigger executor for {app_source:?}"))?;
-        let mut locked_app = self.load_resolved_app_source(resolved_app_source).await?;
-        if env::var(SPIN_DISABLE_CONTAINER_ENV_INJECTION_ENV).is_err() {
-            set_env_vars_in_locked_app(&mut locked_app, app_env_vars);
-        }
+        let locked_app = self.load_resolved_app_source(resolved_app_source).await?;
 
         let _telemetry_guard = spin_telemetry::init(version!().to_string())?;
 
@@ -413,55 +405,12 @@ impl SpinEngine {
     }
 }
 
-// Parses the container environment variables to filter out the Spin runtime
-// environment variables. The Spin runtime environment variables are then reset
-// in the environment without their prefix to ensure they can be used by
-// triggers and telemetry sources.
-//
-// Note: Environment variables with both the Spin runtime prefix and a known K8s
-// container env suffix will be retained in the app environment variable list.
-// This is to account for the scenario where a cluster service name starts with
-// "spin".
-//
-// Returns the Spin application environment variables.
-fn get_app_env_vars() -> Vec<(String, String)> {
-    let (runtime_envs, app_envs): (_, Vec<_>) = std::env::vars().partition(|(var, _)| {
-        var.starts_with(SPIN_RUNTIME_ENV_VAR_PREFIX)
-            && !known_k8s_env_var_suffixes()
-                .iter()
-                .any(|suffix| var.ends_with(suffix))
+// For each container environment variable, resets it in the environment with a given prefix
+fn prefix_env_vars(prefix: &str) {
+    std::env::vars().for_each(|(var, val)| {
+        let prefixed = format!("{}{}", prefix, var);
+        std::env::set_var(prefixed, val);
     });
-    // Reset Spin runtime envionment variables without the runtime prefix
-    runtime_envs
-        .iter()
-        .filter(|(var, _)| !var.starts_with(SPIN_APPLICATION_VARIABLE_PREFIX))
-        .for_each(|(var, val)| {
-            std::env::set_var(&var[5..], val);
-        });
-    app_envs
-}
-
-// Returns a list of known K8s environment variable suffixes that are used to
-// identify environment variables that should be retained in the app environment
-// variable list.
-// See https://kubernetes.io/docs/concepts/containers/container-environment/#container-environment
-fn known_k8s_env_var_suffixes() -> Vec<&'static str> {
-    vec![
-        "SERVICE_PORT",
-        "SERVICE_HOST",
-        "PORT",
-        "HOST",
-        "TCP_ADDR",
-        "TCP",
-        "PROTO",
-    ]
-}
-
-// Sets environment variables in every component of a Spin application
-fn set_env_vars_in_locked_app(locked_app: &mut LockedApp, envs: Vec<(String, String)>) {
-    for component in locked_app.components.iter_mut() {
-        component.env.extend(envs.iter().cloned());
-    }
 }
 
 impl Engine for SpinEngine {