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Harmonizing Global Cannabis Regulations Could Unlock Billion-Dollar Markets

The emerging legal cannabis industry is governed by a layered patchwork of local, regional, and international laws and regulations. At best, the situation is chaotic and confusing, and at worst, it sets entrepreneurs and investors up for failure with many public policies at one level of government directly conflicting with public policies at other levels.

As many advances as the legal cannabis industry has made in recent decades, and how large the industry has become, it still has a long way to go to reach its full potential. In fact, no legal market has reached its full potential anywhere on the planet, and it will stay that way until global cannabis industry regulations are harmonized.

To a large degree, the cannabis industry is still comprised of siloed local markets. There are exceptions, of course, with more countries allowing medical cannabis product exports and imports. However, many markets still prohibit all cannabis commerce, and many others only permit domestic commerce.

Even in markets that are legal and permit cannabis imports and exports in addition to domestic commerce, such as in Canada, the market is still hindered by international agreements. Technically, non-medical cannabis legalization “contravenes the 1961 Single Convention on Narcotic Drugs” according to the United Nations, and that alone creates significant hurdles for operators in all legalized markets.

Harmonizing global cannabis regulations was at the center of an insightful panel presentation at the recent International Cannabis Business Conference in Berlin. The panel, moderated by Benjamin Patock, International Relations at Boveda, discussed how modernized international regulations could unlock billion-dollar markets. Mr. Patock was joined on the panel by:

  • Götz Schneider-Rothhaar, Partner at SKW Schwarz
  • Jonathan Havens, Co-chair of Saul Ewing’s Cannabis Law and Food and Beverage Practices and the firm’s Baltimore Office Managing Partner
  • Atiyyah Ferouz, Founder and CEO of AGCann
  • Sebastien Beguerie, founder of Alpha-Cat, Kanavape, and Golden Buds
  • Frederik Bockslaff, Founder and Partner at NIMROD Rechtsanwälte

You can watch the panel discussion at this link here.

Malta: Cannabis Odor Complaints In Private Spaces To Be Handled By ARUC

The cannabis plant and certain consumption methods can put off a considerable amount of odor, with some members of society finding those odors to be undesirable. In Malta, where lawmakers adopted recreational cannabis legalization in 2021, how cannabis odor complaints in private spaces are handled has changed.

“All complaints about cannabis odours in private spaces will be handled directly by enforcement inspectors from the Authority for the Responsible Use of Cannabis (ARUC), according to recently introduced legal amendments.” reported Malta Independent in its local coverage.

“We are not here to criminalise, but to educate and encourage responsibility towards neighbours and the community. The right for responsible use will remain, but no one has the right to cause inconvenience to others,” ARUC Head Joey Reno Vella said, according to the media outlet.

The change in how cannabis odor complaints in private spaces are handled is part of amendments that were unanimously approved in Malta’s Parliament last month. Cannabis odor complaints involving public spaces will continue to be handled by law enforcement in Malta.

ARUC has set up a private phone hotline for people to submit their complaints. As of earlier this week, only ten complaints had been received by the hotline.

“If ARUC officers deem the complaint to be justified, the first step is to contact the people creating smells, informing them in a friendly and practical manner of ways to mitigate odours,” Vella said, according to local reporting by Times of Malta.

“Should attempts to resolve a complaint amicably fail, Vella said, ARUC would be bound to file proceedings against persistent offenders in front of the Commissioner for Justice, with offenders facing a fine of €235 – described as a measure of last resort.” Times of Malta also reported.

Adults in Malta can legally cultivate up to four plants in their private residences and possess up to 50 grams of cannabis in their homes. Additionally, adults can join a growing list of approved noncommercial cultivation associations.

Germany: 49 Applications For Cannabis Model Projects Submitted

Regional adult-use cannabis commerce pilot trials are operating in multiple jurisdictions in Europe, and at some point, they are expected to launch in Germany as well. Pilot trials are the primary component of the second phase of Germany’s two-tiered legalization model, which was originally adopted on April 1, 2024.

According to the German Cannabis Business Association’s (BvCW) recent newsletter, over four dozen applications for pilot trials have been submitted so far, although it is worth noting that none of them have received approval to proceed.

“The Federal Office for Agriculture and Food ( BLE ) has responded to a request for information on the FragdenStaat website regarding the processing status of applications under Section 2, Paragraph 4 of the Cannabis Act (KCanG). Accordingly, KCanG-related processes are recorded under the subject unit “Cannabis Research Projects” (No. 06.03).” BvCW stated in its newsletter (translated from German to English).

“A detailed evaluation of applications concerning model projects for the distribution of cannabis to end users for recreational use is not yet available and would involve considerable effort and fees.” BvCW also wrote in its newsletter.

Regional adult-use cannabis commerce pilot trials were originally expected to launch in various jurisdictions in Germany by the end of 2024. However, the prospective pilot trials have experienced several delays due to political reasons.

Currently, pilot trials are operating in several local jurisdictions in both the Netherlands and Switzerland. The largest regional adult-use cannabis pilot trial in Switzerland is operating in Zurich, where a total of 4,400 people between the ages of 18 and 80 are participating.

“Over 90 percent of participants now obtain their cannabis products from legal sources, i.e. from one of the three specialist stores or one of the nine pharmacies taking part.” Blue News reported about Zurich’s pilot trial.

Another jurisdiction in Switzerland participating in regional adult-use cannabis commerce pilot trials is Basel, where researchers are finding benefits to allowing adult-use commerce. The results of a previous study, which was the first academic reporting of its kind, were published on the University of Basel’s website in addition to being published in the academic journal Addiction.

“Public health-oriented recreational cannabis access may decrease cannabis use and cannabis-related harms, especially among those using other drugs.” the researchers of that study concluded.

“Furthermore, the study was able to dispel fears that legalization could exacerbate the psychopathological symptoms associated with cannabis consumption in addition to consumption itself: after the first six months, there was no difference between the two study groups in terms of depression, anxiety or other symptoms.” stated the University of Basel on its website.

“The interim assessment after two years of study shows a significant improvement in the mental state of the approximately 300 or so participants who are still taking part.” the University also wrote.

Earlier this year, Marijuana Moment reported that a government-commissioned report found that  Switzerland’s adult-use cannabis legalization pilot program is “running smoothly,” with “no indication of any disturbances to public order.”

“About two years after the pilot program launched in seven municipalities across the country, the Federal Office of Public Health (FOPH) study—carried out by the University of Lausanne and the University of Applied Sciences Northwestern Switzerland—generally determined that the initiative has been a success.” the outlet also reported.

According to initial reporting by krautinvest from earlier this month, Germany’s Federal Office for Agriculture and Food (BLE) rejected an application for a cannabis pilot project in Central Holstein.

“The first applications were received by the Federal Agency for Food and Agriculture (BLE) in December of last year. However, the BLE only subsequently created application forms and sent them to all applicants in the spring. In mid-May, the BLE announced to krautinvest.de that it was processing 40 applications.” the outlet also reported.

Antigua And Barbuda To Expunge Cannabis Convictions

A cannabis conviction on a person’s record can wreak havoc on their life, long after the penalty for the conviction has been completed. It can prevent people from gaining employment, housing, government assistance, and many other things.

My father is an unfortunate example of this. He was convicted of a cannabis-only offense in 1986 in Oregon involving 112 grams of cannabis. He still cannot volunteer as a wrestling coach in Oregon in 2025, even though Oregon legalized cannabis a decade ago, and adults in Oregon can possess up to 224 grams in their homes.

With that in mind, it is always a big deal when a government decides to expunge prior cannabis offenses and/or pardon the individuals involved, which is reportedly what is happening in Antigua and Barbuda.

“The Antigua and Barbuda Government says it will table at the next sitting of Parliament legislation aimed at expunging the criminal records of individuals convicted for possession of small quantities of cannabis and granting them official pardons.” reported Jamaica Observer in its local coverage.

“A statement issued following the weekly Cabinet meeting said that Attorney General and Minister of Legal Affairs, Steadroy Cuttie Benjamin, has been authorised to draft the legislation that will offer a pardon to persons convicted of having less than 15 grams of marijuana.” the outlet also reported.

It is unclear at this time how many individual cases will be impacted. Antigua and Barbuda is an independent Commonwealth archipelagic country located in the Caribbean, comprising its two namesake islands and several smaller ones.

Lawmakers in Antigua and Barbuda previously approved a cannabis policy modernization measure that decriminalized individual cannabis possession. Further reforms that would legalize cannabis sales have also been pursued but have so far failed to reach the finish line.

South African Authority Warns Against Fraudulent Service Providers

As South Africa’s emerging legal cannabis industry continues to increase in size and scope, the nation’s regulators are warning against fraudulent service providers. People and entities are reportedly falsely claiming to be accredited by the South African Health Products Regulatory Authority (SAHPRA).

“The watchdog says it has learned about a troubling trend of individuals and businesses using falsified licences to deceive the public and carry out unregulated operations, putting lives at risk. The warning comes amid the booming popularity of cannabis-infused products in South Africa, from beverages and snacks to baked goods.” reported Health E-News.

“SAHPRA CEO Dr Boitumelo Semete-Makokotlela says in a statement that the rapid spread of cannabis dispensaries in shopping malls, many of which are openly displaying copies of alleged SAHPRA licences, is concerning.” the outlet also reported.

South Africa is on a short list of countries that have adopted national adult-use cannabis legalization measures. South Africa is joined on the list by Uruguay, Canada, Malta, Luxembourg, and Germany. The Czech Republic also recently announced plans to adopt a national measure.

Additionally, two dozen states in the U.S. have adopted recreational cannabis legalization measures, and regional adult-use cannabis commerce pilot trials are operating in both the Netherlands and Switzerland.

The legal cannabis industry in South Africa is still in its infancy by many measures. However, it has the potential to become a continental and international leader, as discussed in a recent article authored by Johann Slabber, CEO of South Africa-based Nexus Pharma.

“Our unique combination of favourable climate conditions, low-cost agricultural production, and access to skilled labour positions us as a highly competitive player. However, what’s still largely missing is a coherent and visible national narrative.” Mr. Slabber recently wrote for CannaBiz Africa after attending the International Cannabis Business Conference in Berlin, Germany.

“With the right frameworks, storytelling, and international engagement, we have the potential to become a powerhouse in the global cannabis economy.” he also wrote.

Pakistan Is Allocating Funds For Medical Cannabis And Hemp Production

Over a year ago, Pakistan’s government approved the creation of a cannabis regulatory agency to oversee the nation’s emerging legal industry. The Cannabis Control and Regulatory Authority Ordinance 2024 resulted in the creation of the Cannabis Control and Regulatory Authority, which reportedly involves a 13-member board of governors, chaired by Pakistan’s Secretary of the Defense Division.

Pakistan’s emerging legal medical cannabis and hemp industries received a boost recently with the announcement that the nation’s government will be allocating a significant amount of public funding, Rs. 1.95 billion, toward medical cannabis and hemp production.

“The project, approved by the Departmental Development Working Party (DDWP) in December 2021, aims to lay the foundation for a regulated and science-driven cannabis industry in Pakistan.” reported Propakistani in its local coverage.

“It includes the development of advanced greenhouses for medical cannabis cultivation, the establishment of a national analytical laboratory to ensure quality and compliance, and the formation of a central authority to oversee industrial hemp and medicinal cannabis activities.” the outlet also reported.

Cannabis industry licenses in Pakistan are expected to be valid for five-year periods, and a maximum harvest threshold of .3% THC will be enforced. Pakistan first approved hemp farming and related industrial processing back in September 2020.

Pakistan’s main exports are currently textiles, cotton, yarn, rice, and leather products. An industry projection from August 2022 estimated that a thriving hemp industry in Pakistan could be worth multiple billions of dollars annually. Many kush cannabis strains originated in the Pakistan region.

At the recent International Cannabis Business Conference in Berlin, leading international cannabis industry economist Beau Whitney, founder of Whitney Economics, estimated that the potential global medical and adult-use cannabis market is roughly $237.8 billion. Mr. Whitney estimated that the value of the global industrial hemp industry could be $456.2 billion.

LEAP Germany Calls For Expanding Legal Options For Obtaining Cannabis

The organization Law Enforcement Against Prohibition (LEAP) originated in the United States, where it has been highly effective in advocating for sensible cannabis reform. LEAP is made up of current and former members of law enforcement who recognize that cannabis prohibition is harmful and a failed public policy, and that regulation is a better approach.

LEAP has expanded internationally and launched chapters in other countries, including Germany, where leadership recently issued a public letter addressed to the nation’s new Federal Government Commissioner for Addiction and Drugs, Hendrik Streeck. Below is LEAP Germany’s letter (translated from German to English):

Dear Mr. Streeck,

on behalf of the entire board of LEAP Germany, I, along with many others, congratulate you on your appointment as the new Federal Government Commissioner for Addiction and Drugs and wish you every success and every success in this role. We would be delighted to continue the constructive and trusting collaboration we began with your predecessor in shaping addiction and drug policy in Germany.

LEAP Germany is a non-profit association founded in 2015 that recruits its members primarily from law enforcement agencies, the criminal justice system, and the criminal justice system.

With this professional background, we advocate for an evidence-based addiction and drug policy that recognizes that prosecuting drug users is the wrong approach to adequately protect the health of this group of people. There is broad consensus among experts that drug policy based on prohibition
has completely failed in terms of its own objectives. In particular, the general preventive effect intended by criminal prosecution has not been achieved, according to all available figures and findings.

The Consumption Cannabis Act, which came into force on April 1, 2024, and the further development of the use of cannabis for medicinal purposes were a first, albeit insufficient, step towards a
scientifically sound drug policy. As LEAP Germany, we had numerous opportunities to contribute our professional expertise during this legislative process. In just the first nine months, this law resulted in more than 110,000 fewer police investigations being initiated by the police nationwide than in the previous year, according to the police crime statistics. 110,000 fewer suspects and thus those affected by stigmatization – a true success.

Much remains to be done, not only with regard to the upcoming evaluation of the Consumption Cannabis Act. As law enforcement officials, we have a strong interest in significantly expanding the options for legally obtaining cannabis for consumers. Effectively reducing the black market in a context of continued high demand is urgently needed for criminological and health policy reasons.

We would be happy to discuss these and other issues with you, Mr. Streeck, in due course. Since you have advocated for an evidence-based addiction and drug policy without a warning finger in your initial public statements, we see a good basis for professional exchange. We would be pleased to receive an invitation to your office in Berlin.

Sincerely,

Hubert Wimber for the board of LEAP Germany

German Lawmaker: Raising THC Limit For CBD Flowers Is “A Sensible Step”

As governments and courts around the world seem to continue to struggle with policies and regulations pertaining to hemp-derived cannabidiol (CBD) products, especially ‘cannabis light’ flowers, one lawmaker in Germany recently expressed her support for raising the THC limit for CBD flowers in her country.

Carmen Wegge is a German politician from the Social Democratic Party (SDP). Ms. Wegge has served as a member of the Bundestag since 2021. She was recently asked a question about Germany’s THC limit for CBD flowers on the platform Abgeordnetenwatch.

“What is the current position of the federal government on CBD flowers with tax stamps?” asked Johannes H. “Furthermore, the question arises as to whether an increase in the maximum permitted THC content in CBD flowers to 1% is being considered – as is already the practice in Switzerland and Italy.”

The individual posing the questions pointed out that “around 95% of the natural CBD flowers” being sold in Germany originate from Switzerland or Italy, and that increasing the THC limit for CBD flowers in Germany “would make sense both from a health policy and economic perspective.”

Late last month, a company in Germany (Sanaleo) received the nation’s first-ever tax stamp from the General Customs Directorate of Neustadt an der Weinstraße for its THC-free flowers. Sanaleo’s CBD flower products are now subject to Germany’s tobacco tax in addition to the 19% VAT. However, it remains to be seen what impact the tax stamp issuance will have on the wider CBD flower sector.

Germany implemented the first provisions of its CanG adult-use legalization law on April 1st, 2024, which permits the nation’s adults to cultivate, possess, and consume cannabis flowers with no THC limit. However, CBD flowers remain popular in the European country.

“Personally, I consider the scientifically justified increase in the permissible THC content in industrial hemp products – including CBD flowers – to 1% to be a sensible step. The example of Switzerland shows that such a limit is possible without creating a significant potential for abuse. The EU Commission has also already decided to increase the permissible THC content for industrial hemp grown in the field from 0.2% to 0.3% – which was a first small step in the right direction.” Ms. Wegge stated in her response to the inquiry (translated from German to English).

“I believe legally secure and health-oriented regulation for CBD products is urgently needed. This includes a discussion about raising the THC limit for industrial hemp if scientific findings show that this does not pose an increased potential for abuse. Such an adjustment could not only create legal clarity but also strengthen the domestic economy and facilitate imports – without compromising consumer safety. I will therefore continue to advocate in parliament for a coherent, fact-based, and Europe-compatible hemp policy in Germany.” Carmen Wegge concluded.

(The featured image of this article of Bundestag member Carmen Wegge is a photo by Anna Voelske.)

Study: Cannabis Legalization Not Associated With Increased Adolescent Use

Modern cannabis prohibition policies were enacted starting in the early 1900s, and since that time, cannabis advocates around the world have worked very hard to reform laws that prohibit cannabis activity, including cannabis commerce.

Leading up to cannabis reform votes and implementation, cannabis opponents often make predictions that such reforms will result in increased cannabis use by adolescents. A team of international researchers based in Australia and the Czech Republic recently conducted a study focusing on the topic of cannabis reform and adolescent usage rates.

The study’s findings were published in the academic publication International Journal of Drug Policy.

“Several jurisdictions have pursued reforms that regulate cannabis production and/or sale for adult (non-medical) use. Looking at outcomes of such reforms across multiple jurisdictions may help to identify outcomes that are inherent to non-criminal cannabis supply, as well as provide insight into the outcomes of specific regulation models.” the researchers wrote about their study.

“We identified nine indicators of cannabis policy outcomes and aggregated them into three domains (social outcomes, outcomes in cannabis use, health-related outcomes). We assessed these outcomes across five jurisdictions with different models of regulating cannabis supply (Netherlands, Spain, U.S. states that legalized cannabis, Uruguay, and Canada).” the researchers wrote about their methodology.

“We used a three-level systematic literature review, prioritising studies with quasi-experimental design (i.e. comparative and longitudinal). We categorised the studies according to their design and the type of outcome (increase, decrease, or no outcome).” they also wrote.

Currently, recreational cannabis sales are limited to adult residents in Uruguay. Canada permits recreational cannabis sales to anyone of legal age. The Netherlands limits legal sales to participants of regional adult-use cannabis commerce pilot trials, fewer than half of the states in the U.S. permit adult-use sales, and sales in Spain operate in a ‘legal grey area.’

“Across long-standing as well as recent cannabis supply regimes, and across different models of cannabis supply, our review identified common outcomes: a decrease in cannabis-related arrests, an increase in adult (but not adolescent) cannabis use, and increase in healthcare utilization (not traffic-related).” the researchers found.

“Regulating cannabis supply may be associated with benefits in the social area and with potential harms regarding public health; there may though be trade-offs depending on the choice of a cannabis regulation model. Jurisdictions may attempt to mix and match the present models of cannabis regulation to achieve the best ratio of benefits and harms.” the study’s authors concluded.

Cannabis is also legal for adult use at a national level in Malta, Luxembourg, Germany, and South Africa. However, of those countries, only Malta and Germany currently provide legal channels for acquiring recreational cannabis beyond home cultivation. Both Malta and Germany are home to legal member-based cultivation associations. Adult-use cannabis legalization is also expected to be implemented soon in the Czech Republic.

Switzerland is another jurisdiction where regional adult-use cannabis commerce pilot trials are operating. The largest regional adult-use cannabis pilot trial in Switzerland is operating in Zurich, where a total of 4,400 people between the ages of 18 and 80 are participating.

“Over 90 percent of participants now obtain their cannabis products from legal sources, i.e. from one of the three specialist stores or one of the nine pharmacies taking part.” Blue News reported about Zurich’s pilot trial.

Another jurisdiction in Switzerland participating in regional adult-use cannabis commerce pilot trials is Basel. The results of a previous study, which was the first academic reporting of its kind, were published on the University of Basel’s website in addition to being published in the academic journal Addiction.

“Public health-oriented recreational cannabis access may decrease cannabis use and cannabis-related harms, especially among those using other drugs.” the researchers of that study concluded.

“Furthermore, the study was able to dispel fears that legalization could exacerbate the psychopathological symptoms associated with cannabis consumption in addition to consumption itself: after the first six months, there was no difference between the two study groups in terms of depression, anxiety or other symptoms.” stated the University of Basel on its website.

“The interim assessment after two years of study shows a significant improvement in the mental state of the approximately 300 or so participants who are still taking part.” the University also wrote.

Earlier this year, Marijuana Moment reported that a government-commissioned report found that  Switzerland’s adult-use cannabis legalization pilot program is “running smoothly,” with “no indication of any disturbances to public order.”

“About two years after the pilot program launched in seven municipalities across the country, the Federal Office of Public Health (FOPH) study—carried out by the University of Lausanne and the University of Applied Sciences Northwestern Switzerland—generally determined that the initiative has been a success.” the outlet also reported.

Previously published government data from the United States found that in jurisdictions where adult-use cannabis legalization was adopted, consumption rates among minors had reduced post-legalization compared to pre-legalization. The results of a Canadian study that was published earlier this year found that while reported overall cannabis use in Canadian society increased post-legalization, “misuse decreased.”