This paper presents a study on product design optimization to reduce the environmental impact of machining. The objective is to analyze the effect of changing the product design parameters such as its dimensions, and basic features on the environmental impact of machining process in terms of its energy consumption, waste produced and the chemicals and other consumables used up during the process. To realize this objective, we used a CAD model of a product with different design scenarios, and analyze their energy consumption using an environmental impact calculator method developed. The waste produced, and the consumables used up, such as lubricants and coolants were analyzed using environmental emission factors. Optimization methods using Genetic Algorithm and Goal Programming are applied to the product design parameters in order to get the best possible product dimensions with the least environmental impact of the machining process.