Burn cactus in a furnace.
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Green:Cook cactus in the furnace to produce "Cactus green".Lime green:Combine cactus green with bonemeal to get lime dye.See the related link below for the official Minecraft crafting guide.
You have to put a cactus in a furnace and then apply the resulting dye to the wool.
You can dye sheep blue and yellow. Breed them and they make a green sheep, then shear/kill it for it’s wool. However there is no other way to get green dye other than cactus
You can 'smelt' it to create the dye, 'cactus green'. Or you can plant a block on sand to make more grow, which can make more dye, or be used as part of a trap, as it hurts mobs.
You can use it on wool, to make a block of green wool, or you can use it on a sheep to make a green sheep, who will yield blocks of green wool when killed or you use shears on it. Cactus Green dye can also be combined with Bonemeal to make Light Green dye.