Cannabis Can Be An Economic Growth Driver In Germany
If properly regulated and allowed to reach its full potential, Germany’s emerging cannabis industry can serve as an economic growth driver, and lawmakers elected in Germany’s upcoming election need to recognize that. That is the premise of a new position paper recently published by the German Cannabis Business Association (BvCW).
The position paper, titled (translated from German to English) ‘Cannabis as a growth driver: Industrial opportunities and policy directions,’ defines three core positions for Germany’s upcoming federal election to be held next month:
- Combating organized crime, increasing public safety – enabling commercial supply chains for consumer cannabis.
- Complete the liberalization of industrial hemp in order to leverage economic and ecological potential.
- Working together to create modern regulations for telemedicine.
“The cannabis industry in Germany has developed into a dynamic and promising industrial sector since the legalization of medical cannabis in 2017. For the medical cannabis sector alone, sales of around 450 million euros are forecast for last year – and the trend is continuing to rise.” BvCW stated in its newsletter this week.
“With the introduction of the Cannabis Act, the market for home cultivation equipment for recreational cannabis has also grown significantly. Industrial hemp also offers diverse and sustainable potential for agriculture, the construction industry, textiles and composites.” the newsletter also stated.
“The cannabis industry is a magnet for foreign investment capital, which creates jobs and generates taxes. The Cannabis Act was an important building block on which politics should continue to build,” explains Dirk Heitepriem, President of BvCW.
“The cannabis industry is growing and has much more potential. In order to exploit this, it is important that the next federal government finally abolishes the intoxication clause for industrial hemp and supports the approval of model projects with professional supply chains,” adds Michael Greif, Managing Director of BvCW.
Germany implemented the first provisions of its new adult-use cannabis legalization model back on April 1, 2024. Regulators then launched the application process for cultivation associations on July 1, 2024. The launch of regional adult-use cannabis commerce pilot trials was initially expected by the end of last year, however, the launch of trials has experienced various delays due to politics.
“While the public debate often remains limited to the area of consumer cannabis, it is primarily the medical cannabis and industrial hemp segments that have developed into an important industrial sector.” BvCW stated in its position paper regarding Germany’s emerging cannabis industry.
“Especially against the background of international legalization projects for medical and, in some cases, consumer cannabis and a weakening German economy, it is crucial to understand this development not only as part of health policy but also as a natural part of future-oriented economic policy.” BvCW also stated in the position paper.
Currently, cannabis is legal for adult use in Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa. Recreational pilot trials are also operating in the Netherlands and Switzerland, and two dozen states in the U.S. have adopted adult-use legalization measures.
With the looming election in Germany on the horizon, and a seemingly shifting political landscape, some cannabis industry members and reform advocates are expressing concern that Germany’s eventual new government may hinder the momentum that Germany’s cannabis movement has experienced in recent years.
“Despite the complete ban on cannabis in recent decades and intensive law enforcement on both the supply and demand sides, cannabis consumption has continued to rise,” BvCW points out in its position paper. “In order to push back the black market with all its negative implications, legal and regulated access routes to quality-assured cannabis products are necessary.”
“This would not only result in a reduction in the burden on law enforcement authorities, more security for consumers and better protection of minors, but also offer the opportunity to benefit from the economic potential in the form of corporate and sales taxes.” states BvCW.
“The Cannabis Industry Association would like to work together with a new federal government to further develop cannabis regulation. Starting with strengthening the resilience of domestic pharmaceutical supply chains, from competitive conditions for agriculture to closely monitored supply chains for consumer cannabis: this is the only way to enable state control and effectively strengthen internal security.” the position paper stated.
BvCW advocates for regulating, and not prohibiting, several sectors of Germany’s emerging cannabis industry in its position paper, from cannabis seeds and genetics to telemedicine and the launch of pilot trials. You can read the full position paper at this link here.