Developers should view new energy regulations for building as an opportunity not a threat, Minister for Communications, Energy and Natural Resources Eamon Ryan said.
Speaking at a property developers' conference in Dublin today, Mr Ryan said low-energy buildings tend to be better buildings and offer better value for the buyer and are easier to sell.
Mr Ryan said climate change is a "scientific reality" that is defining the political reality. "This in turn is defining our economic reality. We are bound by international targets to reduce our carbon emissions. This responsibility will not change nor will the targets go away."
The Minister said the property slowdown is the right time for a "reality check, to think again".
"New ideas on planning and transport present an opportunity to redress some of the development failures of the past," he said.
"We are entering a new greener world where energy will define the economy. Cities, like Dublin, Cork, Galway and Limerick will be compacting again. Dublin will have to develop into a high-quality, new urban space where good design is the order of the day."
The Minister said the Green Party in Government was bringing "new and necessary thinking on planning and local government reform" and that such reform will help to stem urban sprawl.
"Government can only do so much. If you're not part of the change, you're not going to develop. It is now up to all of us, property developers and wider society, to wake up to reality and react in a positive way," the Minister added.