diff --git a/dvc/dirs.py b/dvc/dirs.py
index dcb52b9e4..59223b767 100644
--- a/dvc/dirs.py
+++ b/dvc/dirs.py
@@ -15,7 +15,7 @@ def system_config_dir():
 
 
 def global_config_dir():
-    return os.getenv(env.DVC_SYSTEM_CONFIG_DIR) or platformdirs.user_config_dir(
+    return os.getenv(env.DVC_GLOBAL_CONFIG_DIR) or platformdirs.user_config_dir(
         APPNAME, APPAUTHOR
     )
 
diff --git a/tests/unit/test_dirs.py b/tests/unit/test_dirs.py
new file mode 100644
index 000000000..5ae2acba0
--- /dev/null
+++ b/tests/unit/test_dirs.py
@@ -0,0 +1,8 @@
+from dvc.dirs import global_config_dir
+from dvc.env import DVC_GLOBAL_CONFIG_DIR
+
+
+def test_global_config_dir_respects_env_var(monkeypatch):
+    path = "/some/random/path"
+    monkeypatch.setenv(DVC_GLOBAL_CONFIG_DIR, path)
+    assert global_config_dir() == path