Case Study Thailand’s Community-Based Eco-Industrial Town Development Acknowledgements The author would like to express sincere gratitude to Dr. Decha Pimpisut, Executive Director of Bureau of Public Participatory Promotion of Department of Industrial Works, Ministry of Industry of Thailand, for the information and insights he shared for this case study. This project also has been greatly benefited from extensive support by Khan Ram-Indra and Pasnakorn Maikate of GGGI Thailand in reaching out to Thai government officials and collecting information, and from review and editing contributions by Orestes Anastasia of GGGI’s Investment and Policy Solutions Division. Author Eunice Jieun Kim, Global Green Growth Institute This case study is intended to serve as an example of policies and practices relevant to pursuing a green growth model of development. It describes activities and programs performed by organizations other than GGGI, and GGGI itself had no direct role in their development, adoption, or implementation. Copyright © June 2017 Global Green Growth Institute Jeongdong Building 19F 21-15 Jeongdong-gil Jung-gu, Seoul 04518 Republic of Korea The Global Green Growth Institute does not make any warranty, either express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or any third party’s use or the results of such use of any information, apparatus, product, or process disclosed of the information contained herein or represents that its use would not infringe privately owned rights. The views and opinions of the authors expressed herein do not necessarily state or reflect those of the Global Green Growth Institute. Contents 01 Summary ............................................. 2 02 Context ................................................ 5 03 Approach ............................................. 7 04 Outcomes ......................................... 12 05 Lessons .............................................. 14 Global Green Growth Institute 01 Summary Thailand has been a pioneer in promoting special cooperation with the German Technical economic zones, and has achieved noteworthy Cooperation Agency (GIZ) in 2000 as an attempt to success as a result of its unique approach of make highly polluting IEs more sustainable. promoting inclusive but voluntary industry Although that program was unsuccessful, it participation and by actively engaging local provided the model for a new Thai MoIn initiative communities. launched in 2010 which focused more comprehensively on developing sustainable Map Ta Phut Industrial Estate (IE) is the most industrial communities, under a program titled as symbolic icon of Thailand’s industrial development. Eco Industrial Town development (EIT).\ Formulated in 1990 as part of the Eastern Seaboard Development program, a government- EIT was implemented with a special focus on being led industrial development program in Rayong more inclusive and engaging a large range of province, Map Ta Phut IE has turned a small fishing stakeholders on the ground. Local IEAT offices town into one of the world’s largest petrochemical encouraged community residents, local experts and production centers. The economic significance of officials from relevant local government agencies Map Ta Phut IE has grown dramatically based on to participate more proactively in the development the number of jobs supported and annual of EIT implementation plans for their own region revenues, which are equivalent to 11% of the through Eco Networks. The IEAT also emphasized national GDP. The Industrial Estate Authority of knowledge-sharing and capacity building activities Thailand (IEAT) under the Ministry of Industry for local stakeholders. The EIT program was firstly (MoIn) is charged with developing and managing piloted in five regions, and then expanded to six Thailand’s 47 IEs. other provinces in 2013. Frequent political instability in the central government affected the Economic success of Map Ta Phut IE came with overall EIT implementation progress. However, its some costs. The surrounding areas became adoption in the national development agenda in severally polluted as a result of industrial emissions 2012 ensured continuity of the program, and 19 and waste, causing various health problems for IEs had completed their EIT development master people in nearby communities. Multiple industrial plan as of 2015. accidents such as leaks of toxic gas and factory explosions amplified fear as well as distrust The design of the EIT program also facilitated its towards IE management authorities and resident adoption by key stakeholders. The program factories among local communities. Tensions integrated Thailand’s Green Industry (GI) and the intensified between civil society and the industrial Eco-Industrial Estate (EIE) programs under the EIT sector in the absence of effective government umbrella, allowing green transition either within intervention. The situation was similar in other IE individual firms or across entire industrial estates, areas, which experienced growing pressure to be even when the macro level EIT implementation more responsible for environmental and social faced difficulty. Both GI and EIT programs offer impacts of their operations. different levels of certification, which made it possible for more applicants to participate. In the A decision by the Thai Central Administrative court GI program, for example, companies can be to suspend a large number of industrial certified for actions ranging from basic development projects in Map Ta Phut IE in 2009 commitment to more comprehensive integration of came at the height of tension between green acts in their value chain. Detailed environmentalists and the industrial sector and certification criteria provided clear guidance for the eventually resulted in a turning point in Thailand’s participation in those programs. industrial policy. MoIn and the IEAT had previously piloted the Eco Industrial Estate program in 2 Case Study | Thailand’s Eco-Industrial Towns There are some potential lessons learned from environmental regulations, and so forth. Also, there Thailand’s EIT program and opportunities for are no apparent coordination and collaboration improvement. First, some have noted that the mechanisms between national and subnational current management structure does not promote government bodies. In addition, the EIT program sufficient coordination among relevant government lacks specific and measurable goals on ministries and agencies. Roles and responsibilities environmental, social, and economic impacts, among ministries are not clear without a making monitoring and evaluation of the program designated supervisory authority, whereas EIT challenging and ambiguous. Linkage with national development requires orchestrated actions by climate change commitments can also be multiple ministries dealing with not only industries strengthened in the program output goals. and economy but also urban development, 3 Global Green Growth Institute Sectors in Focus Industry, Energy, Cities Industrial pollution causing environmental degradation and public health Key Challenges hazards; increasing public antagonism against the industrial sector; need to harmonize industrial growth with public well-being and environmental sustainability Environmental: Thailand’s Eco Industrial Town (EIT) development Impacts programs intend to reduce pollution and other environmental hazards by improving energy and resource efficiency in all manufacturing bases by applying industrial symbiosis principles, and to promote clean and environmentally safe production processes. Social: Heavy pollution from industrial zones has incurred considerable social costs in Thailand including impacts on public health, and increased conflict and tension between local communities and industrial zones. The EIT program is expected to resolve these issues by harmonizing industrial priorities with the well-being of local communities. Economic: Poor environmental records and negative images of industrial zones have been a major barrier for the industrial sector in achieving continuous growth in Thailand. The EIT program helps to rebuild trust between communities and industries, and enables industrial growth that brings positive returns to local economies. Eco-industrial estate, Green industries, Eco-industrial town, Industrial Keywords ecology, Sustainable industrial zone development, Stakeholder engagement Geographic Coverage Kingdom of Thailand 4 Case Study | Thailand’s Eco-Industrial Towns 02 Context After the discovery of natural gas in the Gulf of Figure 1. Location of Map Ta Phut (Fuller 2009) Thailand in 1973, the Royal Thai Government launched a development plan for the eastern seaboard region comprised of Chachoengsao, Chonburi, and Rayong provinces, in line with its new national development strategy for export-led industrialization. The government established the Industrial Estate Authority of Thailand (IEAT), a state enterprise under MoIn, to manage development and operation of industrial parks around the country. The Map Ta Phut Industrial Estate (IE) in Rayong province was opened in 1990 as part of the Eastern Seaboard Development Program. Constructed to be the national hub of heavy industries, it currently hosts more than 60 factories mostly in petrochemicals, along with several coal‑fired power plants and oil refineries (Map Ta Phut Industrial Esate 2014). Being the nation’s largest industrial park and also the world’s eighth largest petrochemical production complex, Map