diff --git a/src/odo.ts b/src/odo.ts
index 214b95bed..9015e48e5 100644
--- a/src/odo.ts
+++ b/src/odo.ts
@@ -620,9 +620,9 @@ export class OdoImpl implements Odo {
         return deployedComponents;
     }
 
-    public getKubeconfigEnv(): {KUBECONFIG?: string} {
-        const addEnv: {KUBECONFIG?: string} = {};
-        let kc: KubeConfig;
+    public getKubeconfigEnv(): {KUBECONFIG?: string, HTTP_PROXY?: string, HTTPS_PROXY?: string, [key: string] : any} {
+        const addEnv: {KUBECONFIG?: string, HTTP_PROXY?: string, HTTPS_PROXY?: string, [key: string] : any} = {};
+        let kc: KubeConfigUtils;
         // TODO: Remove when odo works without kubeconfig present
         try {
             kc = new KubeConfigUtils();
@@ -631,8 +631,25 @@ export class OdoImpl implements Odo {
         }
 
         const configPath = path.join(Platform.getUserHomePath(), '.kube', 'config');
+        // kc loaded ether from files listed in env variable or default config location
+        if (kc && process.env.KUBECONFIG || pathExistsSync(configPath)) {
+            // add HTTP(S)_PROXY env var in case cluster from current context has proxy-url property
+            const cccp:string = kc.getProxy();
+            if (cccp) {
+                const cccpu = Uri.parse(cccp);
+                // no scheme means http proxy
+                if (!cccpu.scheme || cccpu.scheme === 'http') {
+                    addEnv.HTTP_PROXY = cccp;
+                } else {
+                    // everything else is https proxy for now
+                    addEnv.HTTPS_PROXY = cccp;
+                }
+            }
+        }
 
-        if (kc && !pathExistsSync(configPath)) { // config is loaded, yay! But there is still use case for missing config file
+        // config is loaded, but in case of no KUBECONFIG var or config file
+        // dummy config is created
+        if (kc && !addEnv.KUBECONFIG && !pathExistsSync(configPath)) {
             // use fake config to let odo get component types from registry
             addEnv.KUBECONFIG = path.resolve(__dirname, '..', '..', 'config', 'kubeconfig');
         }
@@ -640,7 +657,7 @@ export class OdoImpl implements Odo {
     }
 
     public async getCompTypesJson(): Promise<DevfileComponentType[]> {
-        const result: cliInstance.CliExitData = await this.execute(Command.listCatalogComponentsJson(), undefined, true, this.getKubeconfigEnv());
+        const result: cliInstance.CliExitData = await this.execute(Command.listCatalogComponentsJson(), undefined, true);
         const compTypesJson: ComponentTypesJson = this.loadJSON(result.stdout);
         return compTypesJson?.items;
     }
@@ -658,7 +675,7 @@ export class OdoImpl implements Odo {
     public async getComponentTypes(): Promise<ComponentType[]> {
         // if kc is produced, KUBECONFIG env var is empty or pointing
 
-        const result: cliInstance.CliExitData = await this.execute(Command.listCatalogComponentsJson(), undefined, true, this.getKubeconfigEnv());
+        const result: cliInstance.CliExitData = await this.execute(Command.listCatalogComponentsJson(), undefined, true);
         const compTypesJson: ComponentTypesJson = this.loadJSON(result.stdout);
         const devfileItems: ComponentTypeAdapter[] = [];
 
@@ -773,7 +790,7 @@ export class OdoImpl implements Odo {
     }
 
     public createEnv(): any {
-        const env = {...process.env };
+        const env = {...process.env, ...this.getKubeconfigEnv() };
         env.ODO_DISABLE_TELEMETRY = 'true';
         return env;
     }
diff --git a/src/util/kubeUtils.ts b/src/util/kubeUtils.ts
index f1bc17c1a..d6eec92eb 100644
--- a/src/util/kubeUtils.ts
+++ b/src/util/kubeUtils.ts
@@ -31,7 +31,7 @@ export class KubeConfigUtils extends KubeConfig {
         return findHomeDir();
     }
 
-    getProxy(contextName: string): string | undefined {
+    getProxy(contextName: string = this.currentContext): string | undefined {
         if (process.env.KUBECONFIG?.[1]) {
             const cFiles = process.env.KUBECONFIG.split(path.delimiter).filter(file => file);
             //const yaml =