diff --git a/03_launch_mgmt_cluster.sh b/03_launch_mgmt_cluster.sh
index 80c8ad833..2f62a618d 100755
--- a/03_launch_mgmt_cluster.sh
+++ b/03_launch_mgmt_cluster.sh
@@ -10,6 +10,7 @@ source lib/releases.sh
 # shellcheck disable=SC1091
 source lib/network.sh
 
+export CAPI_CONFIG_FOLDER="${CONFIG_FOLDER}/cluster-api"
 export IRONIC_HOST="${CLUSTER_BARE_METAL_PROVISIONER_HOST}"
 export IRONIC_HOST_IP="${CLUSTER_BARE_METAL_PROVISIONER_IP}"
 export REPO_IMAGE_PREFIX="quay.io"
diff --git a/lib/releases.sh b/lib/releases.sh
index d7e6ad07f..41bf23e08 100644
--- a/lib/releases.sh
+++ b/lib/releases.sh
@@ -1,5 +1,30 @@
 #!/bin/bash
 
+# Requires parameters url and version. An optional parameter can be given to
+# exclude some versions. 
+# Example usage:
+# get_latest_release_from_goproxy "https://proxy.golang.org/sigs.k8s.io/cluster-api/@v/list" "v1.8." "beta|rc|pre|alpha"
+get_latest_release_from_goproxy() {
+  local proxuUrl="${1:?no release path is given}"
+  local release="${2:?no release given}"
+  local exclude="${3:-}"
+
+  # This gets the latest release
+  if [[ -z "${exclude}" ]]; then
+    release_tag=$(curl -si "${proxuUrl}" | sort -rV | grep -m1 "^${release}")
+  else
+    # prune based on exluded values given in the command
+    release_tag=$(curl -si "${proxuUrl}" | sort -rV | grep -vE "${exclude}" | grep -m1 "${release}")
+  fi
+
+  # if release_tag is not found
+  if [[ -z "${release_tag}" ]]; then
+    echo "Error: release is not found from ${release_path}" >&2
+    exit 1
+  fi
+  echo "${release_tag}"
+}
+
 function get_latest_release() {
 
   # fail when release_path is not passed
@@ -65,56 +90,60 @@ function get_latest_release() {
   fi
 }
 
-# CAPM3, CAPI and BMO release path
-CAPIRELEASEPATH="{https://api.github.com/repos/${CAPI_BASE_URL:-kubernetes-sigs/cluster-api}/releases}"
-
+CAPIGOPROXY="https://proxy.golang.org/sigs.k8s.io/cluster-api/@v/list"
 # CAPM3, CAPI and BMO releases
-if [ "${CAPM3RELEASEBRANCH}" = "release-1.6" ]; then
+if [[ "${CAPM3RELEASEBRANCH}" = "release-1.6" ]]; then
   # 1.6.99 points to the head of the release-1.6 branch. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.6.99"
-  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.6.")}"
-elif [ "${CAPM3RELEASEBRANCH}" = "release-1.7" ]; then
+  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release_from_goproxy "${CAPIGOPROXY}" "v1.6.")}"
+elif [[ "${CAPM3RELEASEBRANCH}" = "release-1.7" ]]; then
   # 1.7.99 points to the head of the release-1.7 branch. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.7.99"
-  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.7.")}"
-elif [ "${CAPM3RELEASEBRANCH}" = "release-1.8" ]; then
+  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release_from_goproxy "${CAPIGOPROXY}" "v1.7.")}"
+elif [[ "${CAPM3RELEASEBRANCH}" = "release-1.8" ]]; then
   # 1.8.99 points to the head of the release-1.8 branch. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.8.99"
-  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.8.")}"
+  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release_from_goproxy "${CAPIGOPROXY}" "v1.8.")}"
 else
   # 1.9.99 points to the head of the main branch of CAPM3. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.9.99"
-  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.8.")}"
+  export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release_from_goproxy "${CAPIGOPROXY}" "v1.8.")}"
 fi
 
-CAPIBRANCH="${CAPIBRANCH:-${CAPIRELEASE}}"
-
 # On first iteration, jq might not be installed
-if [[ "$CAPIRELEASE" == "" ]]; then
-  command -v jq &>/dev/null && echo "Failed to fetch CAPI release from Github" && exit 1
-fi
-
-if [[ "$CAPM3RELEASE" == "" ]]; then
-  command -v jq &>/dev/null && echo "Failed to fetch CAPM3 release from Github" && exit 1
+if [[ -z "${CAPIRELEASE}" ]]; then
+  echo "Failed to fetch CAPI release from GOPROXY, now trying to fetch with Github"
+  # CAPM3, CAPI and BMO release path
+  CAPIRELEASEPATH="{https://api.github.com/repos/${CAPI_BASE_URL:-kubernetes-sigs/cluster-api}/releases}"
+
+  # CAPM3, CAPI and BMO releases
+  if [[ "${CAPM3RELEASEBRANCH}" = "release-1.6" ]]; then
+    # 1.6.99 points to the head of the release-1.6 branch. Local override for CAPM3 is created for this version.
+    export CAPM3RELEASE="v1.6.99"
+    export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.6.")}"
+  elif [[ "${CAPM3RELEASEBRANCH}" = "release-1.7" ]]; then
+    # 1.7.99 points to the head of the release-1.7 branch. Local override for CAPM3 is created for this version.
+    export CAPM3RELEASE="v1.7.99"
+    export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.7.")}"
+  elif [[ "${CAPM3RELEASEBRANCH}" = "release-1.8" ]]; then
+    # 1.8.99 points to the head of the release-1.8 branch. Local override for CAPM3 is created for this version.
+    export CAPM3RELEASE="v1.8.99"
+    export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.8.")}"
+  else
+    # 1.9.99 points to the head of the main branch of CAPM3. Local override for CAPM3 is created for this version.
+    export CAPM3RELEASE="v1.9.99"
+    export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.8.")}"
+  fi
 fi
 
-# Set CAPI_CONFIG_FOLDER variable according to CAPIRELEASE minor version
-  # Starting from CAPI v1.5.0 version cluster-api config folder location has changed
-  # to XDG_CONFIG_HOME folder.
-  # Following code defines the cluster-api config folder location according to CAPI
-  # release version
-
-# TODO(Sunnatillo): Following condition should be removed when CAPM3 v1.4 reaches EOL
-# NOTE(Sunnatillo): When CAPM3 v1.4 reaches EOL CAPI_CONFIG_FOLDER variable can be removed
-# for the sake of reducing variables
+CAPIBRANCH="${CAPIBRANCH:-${CAPIRELEASE}}"
 
-version_string="${CAPIRELEASE#v}"
-IFS='.' read -r _ minor _ <<< "$version_string"
+if [[ -z "${CAPIRELEASE}" ]]; then
+  echo "Failed to fetch CAPI release from Github"
+  exit 1
+fi
 
-if [ "$minor" -lt 5 ]; then
-  export CAPI_CONFIG_FOLDER="${HOME}/.cluster-api"
-else
-  # Default CAPI_CONFIG_FOLDER to $HOME/.config folder if XDG_CONFIG_HOME not set
-  CONFIG_FOLDER="${XDG_CONFIG_HOME:-$HOME/.config}"
-  export CAPI_CONFIG_FOLDER="${CONFIG_FOLDER}/cluster-api"
+if [[ -z "${CAPM3RELEASE}" ]]; then
+  echo "Failed to fetch CAPM3 release from Github"
+  exit 1
 fi