Environment Minister John Gormley has again accepted that Ireland faces huge challenges in meeting its targets on reducing greenhouse gas emissions.
The latest EPA figures show that Ireland's CO2 emissions fell by 0.66% last year.
The agency says the Government should be able to meet its commitments under the Kyoto Protocol by purchasing carbon credits.
However, it says action to reduce emissions must be intensified in order to meet EU targets for a 20% reduction in the next 12 years.
Asked about the matter today, Mr Gormley again identified agriculture and transport as the main areas where action will have to be taken and expressed confidence that the targets could be met.