Good environmental regulation is central to good governance. Good governance from the State should be able to respond positively to good governance by business. Compliance and enforcement are powerful tools that provide support for good governance. There is a wide range of tools and approaches that can be taken, but to be effective and to contribute to sustainable development, they must incorporate the principles of good governance. Several economic studies have exposed the myth that regulation leads to competitive disadvantage. Indeed, regulation and business performance should go forward hand in hand.