diff --git a/charts/vela-core/templates/defwithtemplate/env-binding.yaml b/charts/vela-core/templates/defwithtemplate/env-binding.yaml
deleted file mode 100644
index e5134b461..000000000
--- a/charts/vela-core/templates/defwithtemplate/env-binding.yaml
+++ /dev/null
@@ -1,62 +0,0 @@
-# Code generated by KubeVela templates. DO NOT EDIT. Please edit the original cue file.
-# Definition source cue file: vela-templates/definitions/internal/env-binding.cue
-apiVersion: core.oam.dev/v1beta1
-kind: PolicyDefinition
-metadata:
-  annotations:
-    definition.oam.dev/description: Provides differentiated configuration and environment scheduling policies for application.
-  name: env-binding
-  namespace: {{ include "systemDefinitionNamespace" . }}
-spec:
-  schematic:
-    cue:
-      template: |
-        output: {
-        	apiVersion: "core.oam.dev/v1alpha1"
-        	kind:       "EnvBinding"
-        	spec: {
-        		engine: parameter.clusterManagementEngine
-        		appTemplate: {
-        			apiVersion: "core.oam.dev/v1beta1"
-        			kind:       "Application"
-        			metadata: {
-        				name:      context.appName
-        				namespace: context.namespace
-        			}
-        			spec: components: context.components
-        		}
-        		envs: parameter.envs
-        		outputResourcesTo: {
-        			name:      context.name
-        			namespace: context.namespace
-        		}
-        	}
-        }
-        #Env: {
-        	name: string
-        	patch: components: [...{
-        		name: string
-        		type: string
-        		properties: {...}
-        		traits?: [...{
-        			type: string
-        			properties: {...}
-        		}]
-        	}]
-        	placement: {
-        		clusterSelector?: {
-        			labels?: [string]: string
-        			name?: string
-        		}
-        		namespaceSelector?: {
-        			labels?: [string]: string
-        			name?: string
-        		}
-        	}
-        	selector?: components: [...string]
-        }
-        parameter: {
-        	clusterManagementEngine: *"cluster-gateway" | string
-        	envs: [...#Env]
-        }
-
diff --git a/pkg/appfile/parser.go b/pkg/appfile/parser.go
index 4535cf8b1..25040c94e 100644
--- a/pkg/appfile/parser.go
+++ b/pkg/appfile/parser.go
@@ -271,6 +271,8 @@ func (p *Parser) parsePolicies(ctx context.Context, af *Appfile) error {
 			w, err = p.makeBuiltInPolicy(policy.Name, policy.Type, policy.Properties)
 		case v1alpha1.ApplyOncePolicyType:
 			w, err = p.makeBuiltInPolicy(policy.Name, policy.Type, policy.Properties)
+		case v1alpha1.EnvBindingPolicyType:
+			w, err = p.makeBuiltInPolicy(policy.Name, policy.Type, policy.Properties)
 		case v1alpha1.TopologyPolicyType:
 			w, err = p.makeBuiltInPolicy(policy.Name, policy.Type, policy.Properties)
 		case v1alpha1.OverridePolicyType:
diff --git a/vela-templates/definitions/internal/policy/env-binding.cue b/vela-templates/definitions/internal/policy/env-binding.cue
deleted file mode 100644
index 124fa3fd3..000000000
--- a/vela-templates/definitions/internal/policy/env-binding.cue
+++ /dev/null
@@ -1,60 +0,0 @@
-"env-binding": {
-	type: "policy"
-	annotations: {}
-	labels: {}
-	description: "Provides differentiated configuration and environment scheduling policies for application."
-}
-template: {
-	output: {
-		apiVersion: "core.oam.dev/v1alpha1"
-		kind:       "EnvBinding"
-		spec: {
-			engine: parameter.clusterManagementEngine
-			appTemplate: {
-				apiVersion: "core.oam.dev/v1beta1"
-				kind:       "Application"
-				metadata: {
-					name:      context.appName
-					namespace: context.namespace
-				}
-				spec: {
-					components: context.components
-				}
-			}
-			envs: parameter.envs
-			outputResourcesTo: {
-				name:      context.name
-				namespace: context.namespace
-			}
-		}
-	}
-	#Env: {
-		name: string
-		patch: components: [...{
-			name: string
-			type: string
-			properties: {...}
-			traits?: [...{
-				type: string
-				properties: {...}
-			}]
-		}]
-		placement: {
-			clusterSelector?: {
-				labels?: [string]: string
-				name?: string
-			}
-			namespaceSelector?: {
-				labels?: [string]: string
-				name?: string
-			}
-		}
-		selector?: {
-			components: [...string]
-		}
-	}
-	parameter: {
-		clusterManagementEngine: *"cluster-gateway" | string
-		envs: [...#Env]
-	}
-}