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On Monday, the National Environment Board (NEB) decided not to appeal the Administrative Court's ruling to designate the heavily-industrialised zone of Map Ta Phut as one of the country's pollution-control areas. The decision was not welcomed by the industrial sector, which says that tighter environmental control could dampen investment. Santi Vilassakdanont, chairman of the FTI, said the court ruling had led to uncertainty as far as new investment projects are concerned. He added the decision not to appeal the Administrative Court decision could mean higher costs for the private sector as well as a longer lead time for the implementation of new investment projects.

But that should be the only cost to the private sector in the short term. If industries follow the environmental rules and regulations, then they should receive the benefits of green regulations in the medium to long term.

Map Ta Phut and other industrial areas on the Eastern Seaboard are home to petrochemical, chemical, steel, power generation and other heavy industries, which have brought investments of tens of billions of baht over the past few decades.

Industry captains say those likely to be affected by the court ruling were small- and medium-sized businesses, as they would be required to go through several more processes when making new investments.

Industries claim that the time for upgrading environmental rules is not now because it is happening when the overall economic sentiment is bad. Industry leaders say that if Thailand upgrades its environmental rules, which would cost more to local businesses, then those businesses will shift to other, lower-cost countries with lax rules on the environment.

But is this the right investment objective that Thailand wishes to pursue - to attract foreign investment at the expense of the local environment?

Somkiat Tangkitvanit, an economist at the Thailand Development and Research Institute (TDRI) made an interesting comment about the NEB decision not to appeal the court's ruling. He said that the industrial sector should turn crisis into opportunity, and that this economic downturn is an excellent time to enhance the perception of Thai products and industries and the "green image".

Some countries may aim to lure foreign investment by offering low cost advantages. But such advantage is unlikely to be sustainable, especially when industries are aiming at adding more value to their products. In spite of the global financial crisis, there is still a growing campaign worldwide to strive for green technology in response to the concerns over climate change. For instance, several developed nations have banned products that are made of or contain potentially hazardous substances such as lead.

Somkiat said that environmental concerns do not always have to be in conflict with economic development. Of course, the curve of new investment in a developing nation might slow somewhat with the introduction of tighter environmental regulations. But after a while, figures in many countries show that the rising curve continues later, and in a sustainable manner, after the country is widely perceived as being a "green" producer.

The announcement of Map Ta Phut as a pollution-control area will address the concerns of people living in nearby communities. Over the past few years there have been concerns among local people about illnesses and allergies that may have been caused by inappropriate treatment of and discarding of waste from the many factories and industrial plants in the area.

If all factories are forced to follow tighter environment rules with strict enforcement, then residents in the area will be able to live in their communities without the fear that they or their children are breathing polluted air or drinking polluted water. They will be able to rest easier in the knowledge that adverse long-term effects on their health have been eliminated or at least reduced. The tourism industry should also grow in the area because visitors will be willing to visit coastal attractions knowing that these places will not be harmful to their health.

Businesses are concerned about the fairness of the local environment board in deciding whether certain industries pass the environmental requirements. However, that concern can be addressed if the government ensures that the local committee is fair in its judgement and that its decisions are in the interest of all in the community.

The industrial sector has begun to realise the growing concerns over the environment. Big plants at Map Ta Phut earlier agreed to invest a combined total of Bt17.85 billion on reducing pollution between 2007 and 2011.

Map Ta Phut can serve as a pilot project for the government to implement tighter environment rules nationwide. If the cooperation between industrialists and environmentalists is successful, concerns on whether economic development comes at the expense of the environment can be addressed.

If the new regulations are enforced, the government will also have to ensure that the concerns of industries are addressed. For instance, members who sit on the body that oversees the environmental rules should be fair in their judgement. The data to be used in environmental assessment should be accurate.

Finally, the public should be educated on the meaning and the definition of pollution-control areas. Otherwise, people might be easily misled and the objective of the pollution control judgement will not be served.