Ireland is on course to miss key targets in tackling waste, CO2 emissions and water quality, the country's environmental watchdog warned today.
And the Environmental Protection Agency said that, even in the face of recession, continued investment was needed to meet international commitments.
As the influential body issued its fourth state of the environment report, director general Mary Kelly said progress had been too slow to date.
"We are not making headway and we are not progressing at the rate we need to,"” she said.
"We have challenges on climate change, we have challenges on water quality and we have challenges on waste."
The report, 'Ireland's Environment 2008', warned that major financial penalties will be incurred if the country fails to meet environmental protection obligations.
Ms Kelly called on Environment Minister John Gormley not to sideline important issues because of economic pressures.
"If we are to protect the important asset that is the Irish environment, we must continue to invest in environmental infrastructure, despite economic slowdown."
"This report is an evidence-based assessment of the Irish environment, which can and should be used by policy makers and decision makers to evaluate progress in meeting the main environmental challenges, and to determine whether national policies are being implemented and are working as planned."
Greenhouse gas emissions will exceed the proposed 2020 target by 7 million tonnes, according to the report.
"Climate change has been identified as the greatest challenge facing this generation and the EPA projections underline the difficulty in addressing this issue," she said.
"Ireland must rapidly develop a greener economy, which is not just a challenge but also an opportunity for a country that has shown itself to be adaptable and progressive in so many ways in the recent past."
The report also called for the reversal of water pollution, remediation of contaminated land and protection of flora and fauna.
The EPA said massive investment in environmental research and technological development is required to understand and address the issues.