Recent water shortages exposed the fragile nature of much of State's infrastructure and pointed to the need for "significant" on-going investment in waste, water and air issues, the Environmental Protection Agency said today.
Major challenges also exist in relation to greenhouse gases while radical changes to practices in all economic sectors will have to be implemented.
The agency published its end-of-year statement for 2010 today.
The report claimed investment in "green infrastructure" such as water and waste needs to be to be made "so that the basic building blocks for a clean and well protected environment are in place and functioning properly".
"It is crucial that Ireland keeps environmental protection centre-stage in terms of investment," said the agency's director general Dr Mary Kelly.
Addressing the priorities in the report, Dr Kelly called for renewed spending on transport, energy and agriculture. She said such spending was necessary to position Ireland for an economic up-turn which would not damage the environment.
Dr Kelly said much work remains to be done to ensure that economic growth, when it returns, is sustainable. This was particularly true in transport, energy and agriculture.
While Ireland's environment was a key strategic asset for the country, she said the transition to a "genuinely low carbon and resource efficient economy" would have substantial benefits, "not only for the environment, but also for the health and well-being of society."
Bu the statement warned major challenges still exist in achieving reductions in greenhouse gases which the statement said should not be underestimated.
"The EU 2020 target is particularly difficult for Ireland to achieve as it excludes those sectors covered by the Emissions Trading Scheme and applies to agriculture, transport, residential and other sectors, where it is much more difficult to achieve reductions," she said.
The new Climate Change Response Bill would provide a framework for developing a new climate change strategy to achieve the required targets, said Dr Kelly.
"Developing policies and measures which see Ireland significantly increasing energy efficiencies and its use of alternative energy sources is crucial", she continued. "We need radical changes in practice. We also need a better understanding of climate change which is where research comes in."
However despite Ireland's difficult economic circumstances during 2010 the environment continues to be of high quality the report concluded.
