Non-commercial turf cutting is to be banned on 32 raised bogs and similar restrictions will come into effect on 23 other sites next year.
Minister for Environment John Gormley has maintained less than 5% of Ireland's peat lands will be affected, however it is anticipated the decision will prove to be highly controversial.
Read the list of bogs
In 1999, the Government secured derogation from EU conservation laws, which stipulated that raised bogs must be protected.
The Cabinet has now decided that non-commercial turf cutting will end with immediate effect in 32 bogs, mostly in counties Galway, Roscommon and Offaly, including the Clara bog, which is in Taoiseach Brian Cowen's constituency.
Another 23 Special Areas of Conservation will cease turf cutting next year.
To assist turf-cutters facing a loss of their winter fuel supply, the Department of the Environment is to provide interim funding and the Attorney General is examining a compensation package.
However, organisations such as the turf-cutters and Contractors Association are expected to be highly critical of the move.
