The state is often portrayed as a progressive entity enabling transition processes. However, this article delves into the limitations faced by state institutions, which have been identified as resistant to change and entrenched in path dependence. This article explores the political and institutional barriers that state institutions encounter when implementing sustainability approaches in the infrastructure sector in Chile. The article argues that explanations based on path dependence and lock-in overlook the crucial political and strategic dimensions of policy and institutional inertia. Employing a Strategic Relational Approach (SRA) reveals that the identified barriers, such as limited state capacity and institutional logics, are strategically employed by state and civil society actors to maintain a growth-oriented policy paradigm conflicting with sustainability goals. State barriers constitute a system of strategic selectivity to discourage the adoption of sustainability approaches while favouring incumbent actors, market-based systems, and those specific infrastructures of the growth-oriented paradigm.