diff --git a/pkg/reconciler/knativeeventing/common/replicasenvvarstransform.go b/pkg/reconciler/knativeeventing/common/replicasenvvarstransform.go
index 24933e9a51..7f0696cb50 100644
--- a/pkg/reconciler/knativeeventing/common/replicasenvvarstransform.go
+++ b/pkg/reconciler/knativeeventing/common/replicasenvvarstransform.go
@@ -30,7 +30,7 @@ import (
 
 var (
 	envVarNames = sets.NewString(system.NamespaceEnvKey, "K_METRICS_CONFIG", "K_LOGGING_CONFIG",
-		"K_LEADER_ELECTION_CONFIG", "K_NO_SHUTDOWN_AFTER", "K_SINK_TIMEOUT")
+		"K_LEADER_ELECTION_CONFIG", "K_NO_SHUTDOWN_AFTER", "K_SINK_TIMEOUT", "K_TRACING_CONFIG", "NAMESPACE")
 )
 
 type unstructuredGetter interface {
diff --git a/pkg/reconciler/knativeeventing/common/replicasenvvarstransform_test.go b/pkg/reconciler/knativeeventing/common/replicasenvvarstransform_test.go
index cbf04c1a2f..06c9109de9 100644
--- a/pkg/reconciler/knativeeventing/common/replicasenvvarstransform_test.go
+++ b/pkg/reconciler/knativeeventing/common/replicasenvvarstransform_test.go
@@ -63,6 +63,10 @@ func TestPingsourceMTAadapterTransform(t *testing.T) {
                   value: ''
                 - name: K_LOGGING_CONFIG_1
                   value: 'overwrite'
+                - name: K_TRACING_CONFIG
+                  value: 'to be overwritten'
+                - name: NAMESPACE
+                  value: 'to be overwritten'
   existing:
     apiVersion: apps/v1
     kind: Deployment
@@ -88,6 +92,10 @@ func TestPingsourceMTAadapterTransform(t *testing.T) {
                   value: 'old'
                 - name: K_LOGGING_CONFIG_1
                   value: 'old'
+                - name: K_TRACING_CONFIG
+                  value: 'old'
+                - name: NAMESPACE
+                  value: 'old'
   expected:
     apiVersion: apps/v1
     kind: Deployment
@@ -111,6 +119,10 @@ func TestPingsourceMTAadapterTransform(t *testing.T) {
                   value: 'old'
                 - name: K_LOGGING_CONFIG
                   value: 'old'
+                - name: K_TRACING_CONFIG
+                  value: 'old'
+                - name: NAMESPACE
+                  value: 'old'
                 - name: K_LOGGING_CONFIG_1
                   value: 'overwrite'
 - name: "existing pingsource-mt-adapter has less containers"