Government policy is to blame for "the litany of growing environmental problems" in the EPA report, according to the Green Party.
The report's message was that "Ireland's environment continues to deteriorate rapidly - damaging public health, killing wildlife and distressing both urban and rural communities", said Mr Trevor Sargent TD.
Government policies had led to an "addiction" to energy consumption, waste generation and abuse of natural habitats.
"Government neglect is also causing several infringement proceedings to be taken against Ireland by the EU for breaches or non-implementation of the packaging directive, drinking water directive, habitats directive and the wild birds directive."
He said the Government should heed the warnings contained in the report "and act now before it is too late".
Noting the report's recommendation for economic instruments to discourage environmentally-damaging behaviour, Mr Sargent urged the Government to introduce energy taxes. "There are two ways of doing this. We can pay after the event when we are forced to do so under the Kyoto agreement or we can pay up front and force people to reduce consumption."
He stressed, however, that any proposed energy tax should be scaled relative to fuel use rather than as a flat rate. He recommended abolishing vehicle registration tax and replacing it with higher taxes on fuel. "There would be an incentive then for people to pool cars or use their cars more efficiently, whereas at the moment, with a flat charge, people feel they need to get value out of it."
On pollution in Dublin, he called for a comprehensive air quality management plan. Dublin Corporation "have dragged their heels on the issue" while Mr Dempsey gave "a miserly" £20,000 for studies towards the plan, the status of which was uncertain, said Mr Sargent.
He noted the EPA report overlooked issues such as the need for sustainable indicators to measure environmental well-being. Such indicators, in use in Scandinavian countries, "need to be implemented now to act as a constant eco-audit".
Meanwhile, the Irish Farmers' Association has said it expected to collect up to 6,000 tonnes of waste plastic this year for recycling - three times last year's total. Farmers wishing to dispose of silage sheeting and wrap can call the collection freephone number: 1800 300 444.