diff --git a/03_launch_mgmt_cluster.sh b/03_launch_mgmt_cluster.sh
index 8a6ef7294..eee2852e4 100755
--- a/03_launch_mgmt_cluster.sh
+++ b/03_launch_mgmt_cluster.sh
@@ -10,6 +10,9 @@ source lib/releases.sh
 # shellcheck disable=SC1091
 source lib/network.sh
 
+# Default CAPI_CONFIG_DIR to $HOME/.config directory if XDG_CONFIG_HOME not set
+CONFIG_DIR="${XDG_CONFIG_HOME:-$HOME/.config}"
+export CAPI_CONFIG_DIR="${CONFIG_DIR}/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"
@@ -468,8 +471,8 @@ function update_component_image(){
 function patch_clusterctl(){
 
   pushd "${CAPM3PATH}"
-  mkdir -p "${CAPI_CONFIG_FOLDER}"
-  touch "${CAPI_CONFIG_FOLDER}"/clusterctl.yaml
+  mkdir -p "${CAPI_CONFIG_DIR}"
+  touch "${CAPI_CONFIG_DIR}"/clusterctl.yaml
 
   # At this point the images variables have been updated with update_images
   # Reflect the change in components files
@@ -488,9 +491,9 @@ function patch_clusterctl(){
   update_capm3_imports
   make release-manifests
 
-  rm -rf "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
-  mkdir -p "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
- cp out/*.yaml "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  rm -rf "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  mkdir -p "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+ cp out/*.yaml "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
   popd
 }
 
diff --git a/lib/releases.sh b/lib/releases.sh
index d7e6ad07f..c718715a3 100644
--- a/lib/releases.sh
+++ b/lib/releases.sh
@@ -1,120 +1,56 @@
 #!/bin/bash
 
-function get_latest_release() {
-
-  # fail when release_path is not passed
-  local release_path="${1:?no release path is given}"
-
-  # set url to get 100 releases from first page
-  local url="${release_path}?per_page=100&page=1"
-
-  # fail when release is not passed
+# 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:-}"
 
-  set +x
-
-  if  [ -z "${GITHUB_TOKEN:-}" ]; then
-    response=$(curl -si "${url}")
+  # This gets the latest release
+  if [[ -z "${exclude}" ]]; then
+    release_tag=$(curl -s "${proxuUrl}" | sort -rV | grep -m1 "^${release}")
   else
-    response=$(curl -si "${url}" -H "Authorization: token ${GITHUB_TOKEN}")
-  fi
-
-  # Divide response to headers and body
-  response_headers=$(echo "${response}" | awk 'BEGIN {RS="\r\n\r\n"} NR==1 {print}')
-  if ! echo "${response_headers}" | grep -q 'Connection established'; then
-    response_body=$(echo "${response}" | awk 'BEGIN {RS="\r\n\r\n"} NR==2 {print}')
-  else
-    response_headers=$(echo "${response}" | awk 'BEGIN {RS="\r\n\r\n"} NR==2 {print}')
-    response_body=$(echo "${response}" | awk 'BEGIN {RS="\r\n\r\n"} NR==3 {print}')
-  fi
-
-  # get the last page of releases from headers
-  last_page=$(echo "${response_headers}" | grep '^link:' | sed -e 's/^link:.*page=//g' -e 's/>.*$//g')
-
-  # This gets the latest release as vx.y.z or vx.y.z-rc.0, including any version with a suffix starting with - , for example -rc.0
-  # The order is exactly as released in Github.
-  # Downside is that selecting official releases only isn't possible, while pre-release
-  # selection is possible given specific enough prefix, like v1.3.0-pre
-  release_tag=$(echo "${response_body}" | jq ".[].name" -r | grep -E "${release}" -m 1)
-
-  # If release_tag is not found in the first page(100 releases), this condition checks from second to last_page
-  # until release_tag is found
-  if [ -z "${release_tag}" ]; then
-    for current_page in $(seq 2 "${last_page}"); do
-        url="${release_path}?per_page=100&page=${current_page}"
-            if [ -z "${GITHUB_TOKEN:-}" ]; then
-                release_tag=$(curl -sL "${url}" | jq ".[].name" -r | grep -E "${release}" -m 1)
-            else
-                release_tag=$(curl -sL "${url}" -H "Authorization: token ${GITHUB_TOKEN}" | jq ".[].name" -r | grep -E "${release}" -m 1)
-            fi
-            # if release_tag found break the loop
-            if [ -n "${release_tag}" ]; then
-                break
-            fi
-    done
+    # prune based on exluded values given in the command
+    release_tag=$(curl -s "${proxuUrl}" | sort -rV | grep -vE "${exclude}" | grep -m1 "${release}")
   fi
 
-  set -x
-
   # if release_tag is not found
-  if [ -z "${release_tag}" ]; then
-    echo "Error: release is not found from ${release_path}" >&2
+  if [[ -z "${release_tag}" ]]; then
+    echo "Error: release is not found from ${proxuUrl}" >&2
     exit 1
-  else
-    echo "${release_tag}"
   fi
+  echo "${release_tag}"
 }
 
-# CAPM3, CAPI and BMO release path
-CAPIRELEASEPATH="{https://api.github.com/repos/${CAPI_BASE_URL:-kubernetes-sigs/cluster-api}/releases}"
+CAPIGOPROXY="https://proxy.golang.org/sigs.k8s.io/cluster-api/@v/list"
+
+# Extract release version from release-branch name
+if [[ "${CAPM3RELEASEBRANCH}" == release-* ]]; then
+  CAPM3_RELEASE_PREFIX="${CAPM3RELEASEBRANCH#release-}"
+else 
+  CAPM3_RELEASE_PREFIX=""
+fi 
 
-# 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.")}"
+# Fetch CAPI version that coresponds to CAPM3_RELEASE_PREFIX release version
+if [[ "${CAPM3_RELEASE_PREFIX}" =~ ^(1\.6|1\.7|1\.8)$ ]]; then
+  export CAPM3RELEASE="v${CAPM3_RELEASE_PREFIX}.99"
+  CAPI_RELEASE_PREFIX="v${CAPM3_RELEASE_PREFIX}."
 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 "${CAPIRELEASEPATH}" "v1.8.")}"
+  CAPI_RELEASE_PREFIX="v1.8."
 fi
-
+export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release_from_goproxy "${CAPIGOPROXY}" "${CAPI_RELEASE_PREFIX}")}"
 CAPIBRANCH="${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"
+  exit 1
 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
-
-version_string="${CAPIRELEASE#v}"
-IFS='.' read -r _ minor _ <<< "$version_string"
-
-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 GOPROXY"
+  exit 1
 fi
diff --git a/tests/roles/run_tests/tasks/generate_templates.yml b/tests/roles/run_tests/tasks/generate_templates.yml
index 99fe49808..194c9d071 100644
--- a/tests/roles/run_tests/tasks/generate_templates.yml
+++ b/tests/roles/run_tests/tasks/generate_templates.yml
@@ -20,14 +20,14 @@
   - name: Deploy clusterctl variables to clusterctl config
     ansible.builtin.blockinfile:
       block: "{{lookup('ansible.builtin.template', '{{ CRS_PATH }}/clusterctl-vars.yaml')}}"
-      path: "{{ CAPI_CONFIG_FOLDER }}/clusterctl.yaml"
+      path: "{{ CAPI_CONFIG_DIR }}/clusterctl.yaml"
       create: yes 
       state: present
 
   - name: Generate clusterctl cluster template
     template:
       src: "{{ CRS_PATH }}/cluster-template-{{ item }}.yaml"
-      dest: "{{CAPI_CONFIG_FOLDER }}/overrides/infrastructure-metal3/{{ CAPM3RELEASE }}/cluster-template-{{ item }}.yaml"
+      dest: "{{CAPI_CONFIG_DIR }}/overrides/infrastructure-metal3/{{ CAPM3RELEASE }}/cluster-template-{{ item }}.yaml"
     with_items:
       - cluster
       - controlplane
@@ -38,7 +38,7 @@
       clusterctl_var: "{{ 'generate' if CAPI_VERSION == 'v1beta1' else 'config' }}"
     shell: >
       clusterctl {{ clusterctl_var }} cluster {{ CLUSTER_NAME }}
-      --from {{CAPI_CONFIG_FOLDER }}/overrides/infrastructure-metal3/{{ CAPM3RELEASE }}/cluster-template-{{ item }}.yaml
+      --from {{CAPI_CONFIG_DIR }}/overrides/infrastructure-metal3/{{ CAPM3RELEASE }}/cluster-template-{{ item }}.yaml
       --kubernetes-version {{ KUBERNETES_VERSION }}
       --control-plane-machine-count={{ CONTROL_PLANE_MACHINE_COUNT }}
       --worker-machine-count={{ WORKER_MACHINE_COUNT }}
diff --git a/tests/roles/run_tests/vars/main.yml b/tests/roles/run_tests/vars/main.yml
index 242105bd7..27e84296c 100644
--- a/tests/roles/run_tests/vars/main.yml
+++ b/tests/roles/run_tests/vars/main.yml
@@ -6,7 +6,7 @@ NAMEPREFIX: "{{ lookup('env', 'NAMEPREFIX') | default('baremetal-operator', true
 CRS_PATH: "{{ metal3_dir }}/tests/roles/run_tests/templates"
 TEMP_GEN_DIR: "{{ metal3_dir }}/tests/roles/run_tests/files/manifests"
 EPHEMERAL_CLUSTER: "{{ lookup('env', 'EPHEMERAL_CLUSTER') | default('kind', true) }}"
-CAPI_CONFIG_FOLDER: "{{ lookup('env', 'CAPI_CONFIG_FOLDER') | default('$HOME/.config/cluster-api', true) }}"
+CAPI_CONFIG_DIR: "{{ lookup('env', 'CAPI_CONFIG_DIR') | default('$HOME/.config/cluster-api', true) }}"
 CLUSTER_APIENDPOINT_HOST: "{{ lookup('env', 'CLUSTER_APIENDPOINT_HOST') }}"
 CLUSTER_APIENDPOINT_PORT: "{{ lookup('env', 'CLUSTER_APIENDPOINT_PORT') | default(6443, true) }}"
 CLUSTER_APIENDPOINT_IP: "{{ lookup('env', 'CLUSTER_APIENDPOINT_IP') }}"
diff --git a/vars.md b/vars.md
index 5a4eefb6b..524ee6ee1 100644
--- a/vars.md
+++ b/vars.md
@@ -134,7 +134,7 @@ assured that they are persisted.
 | DHCP_HOSTS | A list of `;` separated dhcp-host directives for dnsmasq | e.g. `00:20:e0:3b:13:af;00:20:e0:3b:14:af` | |
 | DHCP_IGNORE | A set of tags on hosts to be ignored by dnsmasq | e.g. `tag:!known` | |
 | ENABLE_NATED_PROVISIONING_NETWORK | A single boolean to configure whether provisioner and provisioning networks are in separate subnets and there is NAT betweend them or not | "true","false" | "false" |
-| CAPI_CONFIG_FOLDER | Cluster API config folder path  | `$HOME/.cluster-api/`, `$XDG_CONFIG_HOME/cluster-api`, `$HOME/.config/cluster-api` | `$HOME/.config/cluster-api` |
+| CAPI_CONFIG_DIR | Cluster API config directory path  | `$HOME/.cluster-api/`, `$XDG_CONFIG_HOME/cluster-api`, `$HOME/.config/cluster-api` | `$HOME/.config/cluster-api` |
 | IPA_BASEURI | IPA downloader will download IPA from this url | | https://tarballs.opendev.org/openstack/ironic-python-agent/dib |
 | IPA_BRANCH | The last part of the name of the IPA archive | | master |
 | IPA_FLAVOR | The middle part of the name of the IPA archive | | centos9 |