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UK Cannabis Legalization Could Yield £1.5 Billion Annually

Written by Johnny Green on . Posted in Business, Policy.

Adult-use cannabis legalization could generate as much as £1.5 billion in revenue and savings according to a new report by the advocacy group Transform Drug Policy Foundation.

The report, which was posted on the organization’s social media account, determined that over £1.2 billion would be generated from taxes and fees annually, and an additional £284 million would be saved annually by the nation’s criminal justice system no longer enforcing cannabis prohibition policies.

“There would be costs incurred for Govt by regulatory infrastructure – inspection, monitoring, compliance, trading standards etc – but largely covered by licensing/other fees.” the organization stated on social media.

Transform Drug Policy Foundation also determined that “up to 15,500 full-time jobs could be created in cultivation, manufacturing, retail & related services, (depending on the model implemented).”

The report also found that “a regulated market could displace 80% of the illegal trade in five years (based on trends in Canada).” The organization’s proposed legalization model involves permitting home cultivation, cultivation associations, and a government retail monopoly.

A previous analysis published last year by UK-based advocacy group CLEAR determined that legalizing cannabis for adult use in the United Kingdom and taxing and regulating sales could generate as much as £9.5 billion per year based on their proposed model.

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German Judges Association Warns Against Reversing Legalization

Written by Johnny Green on . Posted in Policy.

When some people think about the economics of cannabis legalization, they tend to focus on revenue generation from industry taxes and fees, which is understandable. After all, the emerging legal cannabis industry is capable of generating considerable sums if it is allowed to legally operate.

However, there is more to the legalization economic equation than just revenue generation. There is also revenue savings involved when governments refrain from enforcing failed cannabis prohibition policies, and that is true in Germany where cannabis became legal for adult use in April 2024.

Germany’s criminal justice system and taxpayers are big winners of German legalization. Law enforcement in Germany can focus on fighting real crime, the court dockets are freed up to address cases that actually need to be addressed, and Germany’s limited public resources can be used for more meaningful public projects.

The New Association of Judges (NRV) in Germany seems to agree, having recently expressed a positive conclusion regarding legalization and warned newly elected German lawmakers against reversing the CanG law.

“Rolling back the law would mean that the judiciary would have to pursue small consumers on a large scale again. This would mean there would be no time to take action against organized crime.” reported Deutschlandfunk in its local coverage.

“In addition, according to the NRV, the state faces high compensation payments in the event of withdrawal. If the cultivation and consumption of cannabis were to be completely banned again, this would amount to expropriation of the cannabis clubs, it was said. This would enable the clubs to make claims for compensation against the state. The investment in cannabis cultivation is high and the licenses are valid for seven years according to the law.” the outlet also stated.

The Institute for Competition Economics at the Heinrich Heine University in Duesseldorf previously conducted an analysis which found that adult-use legalization could yield as much as 1.3 billion euros per year in savings for Germany’s police and judicial system.

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Malaysia Health Ministry Opens Cannabis-Based Product Registration

Written by Hazel Norman on . Posted in Business, Policy.

A major push for limited medical cannabis policy reform and industry regulations took place in Malaysia in 2022, and the nation passed a major milestone this week with Malaysia’s Health Ministry announcing that registration for medical cannabis-based products is now open.

“Those who have sufficient scientific evidence supporting the use of cannabis-based products for medical treatment can come forward to submit their product registration, says the Health Ministry.” reported The Star in its local coverage.

“However, they must comply with the relevant laws, the ministry said in a written parliamentary reply dated March 3.” the media outlet also reported.

Malaysia’s cannabis policies are largely governed by the Dangerous Drugs Act 1952 and the Poisons Act 1952, both of which classify cannabis and its derivatives as ‘dangerous drugs.’

Historically, the region that Malaysia is located in is where some of the harshest cannabis laws on earth can be found, and in some ways in Malaysia, can still be found.

Malaysia is one of a handful of countries around the world, most of them located in the same region, that still issues the death penalty for certain cannabis-only offenses. With that in mind, any movement towards permitting medical cannabis is significant.

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Colombia’s President Calls For Cannabis Legalization

Written by Hazel Norman on . Posted in Policy.

Over the weekend Colombian President Gustavo Petro urged his nation’s Congress to legalize cannabis for adult use, stating in a social media post (translated from Spanish to English) that “the prohibition of marijuana in Colombia only brings violence.”

“The empowerment of mafia organizations shows the failure of prohibition and the absence of alternative measures to simple prohibition,” President Petro also stated in his social media post. “I ask the Colombian Congress to legalize marijuana and remove this crop from violence.”

This is not the first time that Colombia’s current president has publicly expressed support for cannabis legalization. In late 2023, when a push for legalization in Colombia failed, President Gustavo Petro called out lawmakers for ‘helping to perpetuate illegal drug trafficking and the violence associated with the unregulated trade.’

Colombia is home to an emerging legal medical cannabis industry, including the legalized exporting of medical cannabis products. Colombia’s legal industry exported over $10.8 million worth of medical cannabis products in 2023.

Cannabis is currently legal at a national level for adult use in Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa. Additionally, cannabis is legal at a state level in two dozen states in the U.S., and regional adult-use cannabis commerce pilot trials are currently operating in the Netherlands and Switzerland.

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Industrial Hemp Regulations To Be Reviewed In New Zealand

Written by Hazel Norman on . Posted in Business, Policy.

The global industrial hemp market is already massive, and likely to continue to increase in size for the foreseeable future. According to a recent market analysis by Technavio, the worldwide industrial hemp market “is set to grow by USD 18.31 billion from 2025 to 2029” at “a CAGR of over 27% during the forecast period.”

New Zealand is a market that is largely struggling to properly get off the ground, however, a recent announcement by government officials that the nation’s hemp regulations will be reviewed could help.

“On Friday, Minister for Regulation David Seymour announced it would review what he called “outdated and burdensome regulations” surrounding industrial hemp.” reports The New Zealand Herald in its local coverage.

“It was the result of years of campaigning by hemp farmers, processors and companies that were hamstrung by regulations developed in 2006, which put licensing for cultivation into the hands of the Ministry of Health.” the outlet also reported.

In addition to the previously cited market analysis by Technavio, IMARC Group also recently published a global industrial hemp market analysis, finding that the global industrial hemp market size “was valued at USD 6.2 Billion in 2024” and will “reach USD 20.9 Billion by 2033, exhibiting a CAGR of 14.5% during 2025-2033.”

“The market is witnessing significant growth mainly driven by the extensive change in legislative landscapes facilitating a more favorable environment for hemp cultivation and processing, thereby facilitating the recognition of hemp’s environmental benefits and diversification of hemp applications across numerous end use industries.” IMARC Group also stated.

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Constitutional Challenge To Cannabis Prohibition In Namibia

Written by Hazel Norman on . Posted in Policy.

Cannabis prohibition policies are typically challenged in one of two ways. The first is via the political process, with some countries having better options for seeking this route than others.

The other common way that cannabis advocates challenge cannabis prohibition policies is via the courts. Several countries have witnessed their top courts handing down landmark rulings against cannabis prohibition, such as in Mexico and South Africa. Namibia is the latest country to see a cannabis court challenge.

“Three judges of the Windhoek High Court are set to hear oral arguments in early July on whether an attempt to have the outlawing of cannabis in Namibia declared unconstitutional is ripe to be decided at this stage.” reported The Namibian in its local coverage.

“The plaintiffs in the case, Ganja Users of Namibia (GUN) president Brian Jaftha and GUN secretary general Borro Ndungula, want the High Court to declare the prohibition of the possession and use of cannabis by adults in Namibia as unconstitutional.” the outlet also reported.

Currently, cannabis activity is expressly permitted by adults in Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa after lawmakers in those countries adopted national adult-use cannabis legalization measures.

Additionally, court decisions have been rendered in at least Spain, Italy, and Mexico that afford some level of protection for adult cannabis consumers. Cannabis is also legal at the state level in two dozen states in the U.S., and recreational pilot trials are operating in the Netherlands and Switzerland.

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French Lawmakers File Cannabis Legalization Proposal

Written by Hazel Norman on . Posted in Policy.

Momentum for cannabis policy and regulatory modernization efforts has increased in recent years in Europe, with three countries—Malta, Luxembourg, and Germany — having adopted national adult-use legalization measures.

France is one European nation that advocates hope will make history soon by adopting recreational legalization. A pair of lawmakers, Ludovic Mendes (EPR) and Antoine Léaument (LFI), recently filed a proposal in France to achieve that goal.

“This measure, which opposes the government’s repressive policy, would aim to regulate production and distribution via a public agency, on the model of the National Gaming Agency.” reported Entrevue in its local coverage (translated from French to English).

“Legalization advocates, such as the Addictions France association, point out that cannabis consumption is already massive in France, with around 4 million regular users. For them, lifting the ban would not cause a significant increase in consumption, but would on the contrary allow for stricter control of the product and a reduction in health risks.” the outlet also reported.

A recent report produced by NORML France determined that 99.7% of cannabis being consumed in the European nation is unregulated, which creates potential public health risks.

According to a recent newsletter sent out by international cannabis economist Beau Whitney of Whitney Economics, France is home to the largest total addressable cannabis market in the European Union with a value of $11.3 billion (midpoint).

A previous study by an economic advisory board within the nation’s prime minister’s office determined that the French government spends roughly €570m annually on cannabis prohibition enforcement. The study recommended that France adopt adult-use cannabis legalization and launch a regulated recreational industry.

Emmanuelle Auriol, a professor at the Toulouse School of Economics who authored the study’s report and findings, estimated that such a policy change could create as many as 80,000 new jobs, and generate €2.8bn in taxes annually.

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How Does Proposed Swiss Legalization Compare To Other EU Countries?

Written by Johnny Green on . Posted in Policy.

Currently, national adult-use cannabis legalization measures have been adopted by three European Union member nations. Malta was the first to do so, adopting recreational legalization in 2021, followed by Luxembourg in 2023.

Germany has adopted the most robust form of adult-use legalization in the EU so far. Whereas Malta and Luxembourg have both adopted cultivation and possession by adults, and Malta cultivation associations, Germany has legalized cultivation, associations, and will also eventually launch commerce pilot trials. Germany also has the largest legal medical cannabis industry in Europe.

If current trends persist, Switzerland may become the fourth EU country to adopt a national legalization measure. On Friday, Switzerland’s Social Security and Health Committee of the National Council gave preliminary approval to a recreational legalization plan by a 14-9 vote.

“Public health and youth protection must be placed at the heart of a renewed cannabis policy. Adults must be granted strictly regulated access to cannabis. In addition, to ensure that consumption is not encouraged, cannabis products must not be sold for profit and must be subject to an incentive tax. This is what is provided for in the draft drawn up by the National Council’s Social Security and Public Health Committee (CSSS-N).” the committee stated in a translated press release.

“The committee is unanimous in its view that cannabis consumption is a social reality. The majority of the committee considers that the current situation is unsatisfactory and that the prohibitive approach is wrong. In its view, strictly regulated access to cannabis and a controlled market better protect public health, strengthen youth protection and improve safety.” the press release also stated.

Below are the key points of the proposal being considered in Switzerland:

  • Cannabis will remain classified as a narcotic.
  • Adult residents can cultivate up to three plants in their private residences.
  • Eventual sales will be subject to a state monopoly. Sales must not be for profit. Any profits are allocated to prevention, harm reduction and addiction support.
  • Vertical integration is prohibited.
  • Advertising is prohibited, including for cannabis seeds and cuttings and accessories related to the consumption of cannabis.
  • Cannabis products will be subject to an incentive tax “in order to limit consumption and direct it towards less risky forms.” The tax rate will be tied to “THC content and the type of consumption.” Cantons may levy “a monitoring tax and fees.”
  • Penalties will be increased for “people who evade the legal market.”
  • A “zero tolerance” approach to driving under the influence will be instituted, with anyone proven to “have consumed cannabis” being “considered unfit to drive.”

“The next step will be to draw up an explanatory report on the preliminary draft, so that the committee can examine these documents during the summer. Interested parties and stakeholders will then have the opportunity to take a position as part of the consultation procedure.” the committee stated about the next steps for the Swiss legalization approval process.

The legalization proposal being considered involves permitting adults to possess a personal amount of cannabis, however, a specific possession limit does not appear to be identified yet. According to the committee press release, “Maximum quantities for private and public possession apply” but quantities were ultimately not specified.

By comparison, what was preliminarily approved in Switzerland is better than what is in place in Luxembourg in some ways and less favorable in other ways. In Luxembourg adults can cultivate up to four plants in private residences, which is better than the three plant proposal in Switzerland, but there is no recreational commerce allowed in any manner in Luxembourg. The possession limit in Luxembourg is 3 grams.

In Malta, adults can also cultivate up to four plants in their private residences, but the possession limit is considerably greater compared to Luxembourg’s possession limit. Adults in Malta can possess up to 7 grams when away from their homes and up to 50 grams within their homes. The previously mentioned cultivation associations operating in Malta are not subjected to as many limitations as what is being proposed for retail outlets in Switzerland, and are not subject to a state monopoly.

If/when Switzerland’s proposal is approved, it will not eclipse Germany’s legalization model. Germany’s legalization model involves a three plant home cultivation limit, which is the same as the Swiss plan. German adults can possess up to 25 grams when away from their residences and 50 grams in their residences. Germany is already home to dozens of approved cultivation associations, and hundreds more have applications pending. Eventually, thousands of associations are expected to be approved across Germany, and they will not be subject to a state monopoly, nor the level of restrictions being proposed in Switzerland.

Switzerland has multiple regional adult-use cannabis commerce pilot trials operating right now, and it is unclear how current and future trials will be handled if/when the Swiss legalization plan is enacted. Germany’s legalization model involves permitting trials, and it is expected that they will eventually be located throughout most parts of Germany. Over two dozen municipalities in Germany have already expressed interest in launching pilot trials.

Arguably the most significant difference between what is being proposed in Switzerland versus what is already approved in Germany is how cannabis is classified. The Switzerland plan involves keeping cannabis classified as a narcotic, which is a nuanced policy that has a dramatic impact on what can and cannot happen when it comes to cannabis. Conversely, Germany removed cannabis from the nation’s Narcotics List as part of the CanG law’s approval, which has dramatically improved the nation’s medical cannabis program and removed many barriers to cannabis research.

jar of cannabis flower

99.7% Of Cannabis In France Remains Unregulated

Written by Hazel Norman on . Posted in Business, Policy.

As of 2022, the European Union Drugs Agency estimated that France had the greatest cannabis consumption rate of any of its member nations, with a reported 10.6% of France’s population having consumed cannabis at least once within the last year.

Unfortunately, cannabis use by adults for recreational purposes remains illegal in France, and only patients enrolled in the country’s medical cannabis trial experiment are permitted to consume cannabis legally. As such, nearly all of the cannabis consumed in France comes from unregulated sources.

“Despite a strict prohibition policy in France, the figures are clear: after the Place Nette operations, 99.7% of the cannabis circulating in France remained on the black market.” reports Newsweed (translated from French to English).

“This observation highlighted by the NORML France association in a report entitled “Why legalize cannabis in 2025” aims to show the ineffectiveness of repressive measures and raises the question of their relevance in the face of a market that continues to prosper.” the outlet also reported.

Health authorities in France announced late last year that the nation’s medical cannabis trial experiment will be extended until July 31st, 2025. The announcement is welcomed news to the reported 1,800 suffering patients estimated to be currently participating in the trial.

“The experiement was due to end on 31 December 2024, but at a meeting on Thursday between patient associations and the health authorities, the Ministry of Health gave the green light for it to run for a further six months, FranceInfo reported.” stated RFI in its local coverage.

The French medical cannabis experiment received initial approval from the federal Senate back in 2019, however, the launch of the trial was delayed until the spring of 2021 due to various reasons.

Initially slated for two years, France’s medical cannabis experiment was eventually granted a one-year extension and was set to end in 2024 before receiving the latest extension pushing the estimated end of the trial to the summer of 2025.

According to a recent newsletter sent out by international cannabis economist Beau Whitney of Whitney Economics, France is home to the largest total addressable cannabis market in the European Union with a value of $11.3 billion (midpoint).

A previous study by an economic advisory board within the nation’s prime minister’s office determined that the French government spends roughly €570m annually on cannabis prohibition enforcement. The study recommended that France adopt adult-use cannabis legalization and launch a regulated recreational industry.

Emmanuelle Auriol, a professor at the Toulouse School of Economics who authored the study’s report and findings, estimated that such a policy change could create as many as 80,000 new jobs, and generate €2.8bn in taxes annually.