diff --git a/cmd/dagger/cmd/up.go b/cmd/dagger/cmd/up.go
index 3e6960cd..12ccf559 100644
--- a/cmd/dagger/cmd/up.go
+++ b/cmd/dagger/cmd/up.go
@@ -25,7 +25,7 @@ import (
 var upCmd = &cobra.Command{
 	Use:   "up",
 	Short: "Bring an environment online with latest plan and inputs",
-	Args:  cobra.NoArgs,
+	Args:  cobra.MaximumNArgs(1),
 	PreRun: func(cmd *cobra.Command, args []string) {
 		// Fix Viper bug for duplicate flags:
 		// https://github.com/spf13/viper/issues/233
@@ -52,6 +52,20 @@ var upCmd = &cobra.Command{
 		}
 
 		ctx := lg.WithContext(cmd.Context())
+		cl := common.NewClient(ctx)
+
+		if viper.GetBool("europa") {
+			err = europaUp(ctx, cl, args...)
+
+			// TODO: rework telemetry
+			// <-doneCh
+
+			if err != nil {
+				lg.Fatal().Err(err).Msg("failed to up environment")
+			}
+
+			return
+		}
 
 		project := common.CurrentProject(ctx)
 		st := common.CurrentEnvironmentState(ctx, project)
@@ -62,20 +76,6 @@ var upCmd = &cobra.Command{
 
 		doneCh := common.TrackProjectCommand(ctx, cmd, project, st)
 
-		cl := common.NewClient(ctx)
-
-		if viper.GetBool("europa") {
-			err = europaUp(ctx, cl, project.Path)
-
-			<-doneCh
-
-			if err != nil {
-				lg.Fatal().Err(err).Msg("failed to up environment")
-			}
-
-			return
-		}
-
 		env, err := environment.New(st)
 		if err != nil {
 			lg.Fatal().Err(err).Msg("unable to create environment")
@@ -112,10 +112,10 @@ var upCmd = &cobra.Command{
 	},
 }
 
-func europaUp(ctx context.Context, cl *client.Client, path string) error {
+func europaUp(ctx context.Context, cl *client.Client, args ...string) error {
 	lg := log.Ctx(ctx)
 
-	p, err := plan.Load(ctx, path, "")
+	p, err := plan.Load(ctx, args...)
 	if err != nil {
 		lg.Fatal().Err(err).Msg("failed to load plan")
 	}
diff --git a/plan/plan.go b/plan/plan.go
index d6802fbb..f2dc0015 100644
--- a/plan/plan.go
+++ b/plan/plan.go
@@ -23,13 +23,13 @@ type Plan struct {
 	source  *compiler.Value
 }
 
-func Load(ctx context.Context, path, pkg string) (*Plan, error) {
+func Load(ctx context.Context, args ...string) (*Plan, error) {
 	// FIXME: universe vendoring
-	if err := state.VendorUniverse(ctx, path); err != nil {
+	if err := state.VendorUniverse(ctx, ""); err != nil {
 		return nil, err
 	}
 
-	v, err := compiler.Build(path, nil, pkg)
+	v, err := compiler.Build("", nil, args...)
 	if err != nil {
 		return nil, err
 	}
diff --git a/state/project.go b/state/project.go
index ec180a8f..0c70c9e1 100644
--- a/state/project.go
+++ b/state/project.go
@@ -356,6 +356,22 @@ func (w *Project) cleanPackageName(ctx context.Context, pkg string) (string, err
 func cueModInit(ctx context.Context, parentDir string) error {
 	lg := log.Ctx(ctx)
 
+	if parentDir == "" {
+		wd, _ := os.Getwd()
+		separator := string(os.PathSeparator)
+		dirs := strings.Split(wd, separator)
+		dirsLen := len(dirs)
+
+		// traverse the directory tree starting from PWD going up to successive parents
+		for i := dirsLen; i > 0; i-- {
+			parentDir = strings.Join(dirs[:i], separator)
+			// look for the cue.mod filder
+			if _, err := os.Stat(parentDir + "/cue.mod"); !os.IsNotExist(err) {
+				break // found it!
+			}
+		}
+	}
+
 	modDir := path.Join(parentDir, "cue.mod")
 	if err := os.Mkdir(modDir, 0755); err != nil {
 		if !errors.Is(err, os.ErrExist) {