The research addresses the role of environmental costs in achieving sustainable development dimensions which is a crucial topic with a direct impact on society and its financial, material, and human resources. The problem statement revolves around the lack of attention from economic entities towards environmental costs and addressing environmental pollution, which is fundamental for maintaining a clean environment free from pollution to meet the current and future needs of individuals by preserving natural resources and avoiding their depletion. The ultimate goal of the research is to define environmental costs and their types, outline the conceptual framework of sustainable development and its dimensions, as well as highlighting the relationship between the application of environmental costs and the dimensions of sustainable development. To achieve the research objectives, the current situation of the company’s plants was studied, and a questionnaire was designed for the public company for cement industry in Karbala, Kufa, Samawah, and Basra. The research hypotheses were tested using the statistical software SPSS. The main findings indicate that the application of environmental costs in economic entities has a positive impact on achieving various sustainable development goals. The key recommendations include economic entities’ commitment to environmental requirements, obtaining necessary approvals from the Iraqi Ministry of Environment for their activities, and compliance with environmental instructions and laws.