Achieving greater eco efficiency - doing more with less - is to be a "key overarching approach to sustainable development" over the next 10 years, according to the Government's review.
It notes that the pressures now being placed on the environment are associated with economic growth, related consumption patterns and underdeveloped environmental infrastructure - most notably in the area of waste management.
"They point to the conclusion that underlying problems in relationship between the economy and the environment in Ireland have not yet been fully addressed and that there are substantial challenges on the road to meeting domestic and international commitments."
The review emphasises that Ireland's environment is "a "vital resource which all depend on and, consequently, must cherish".
Apart from its own intrinsic worth, it was central to a good quality of life as well as a key part of what attracts investment to the State.
"While there have been improvements in key areas such as river water quality, local air quality and waste recycling, much remains to be done to de-couple economic activity from environmental pressures," the review concedes.
"There is a need, in particular, to remedy problems inherited from the past, to face up to the relentless pressures being placed on the environment today and to ensure that problems are not built up for the future," it says.
This would involve trying progressively to de-couple economic activity from environmental degradation, including the promotion of "cleaner greener production" in industry as well as implementing a national waste prevention programme.
"Increases in the amount of household and commercial waste are closely linked with economic growth, and this emphasises the challenge of de-coupling waste generation from economic growth will be formidable," the review says.
Increasingly, however, "business recognises that it can benefit from the adoption of cleaner production and eco-efficiency principles by moving from costly end-of-pipe solutions to managing environmental issues on an integrated basis," according to the Government's review.