A comprehensive new report looks at the impacts of a “second wave” of cannabis legalisation in Germany.
It was in March 2017 when a law recognising cannabis as medicine and increasing its availability came into effect. There was much hype around it – but if failed to meet initial expectations.
But somewhat of a game-changer has been a “second wave” of legalisation, Germany’s Cannabis Act (CanG) that came into effect on 1 April 2024. This legalised personal possession and consumption of cannabis. CanG allows individuals to possess up to 25 grams of cannabis in public and 50 grams at home, and to cultivate up to three plants at home.
According to Prohibition Partners’ “The German Cannabis Report”, CanG has simplified access for patients and removed barriers for doctors, pharmacies, and distributors. With medical cannabis no longer classified as a narcotic, patient numbers are rapidly rising,
A huge importer of medical cannabis to this point, domestic production and research are now more feasible thanks to the CanG Act, and costs for patients have decreased; with potential further reductions from new reimbursement regulations under development.
The CanG Act also introduced a framework for strictly-controlled non-profit cannabis cultivation associations. More than 300 applications for what are also known as cannabis social clubs had been submitted by September this year. Prohibition Partners estimates sales from these associations, assuming all receive a licence, could reach annual revenues of approximately €180 million.
The CanG Act home growing provisions has also created commercial opportunities for businesses supplying cultivation and processing products such as grow tents, lights and nutrients.
As for issues related to driving, there is a new legal limit of 3.5ng/ml of blood serum THC, but medical cannabis patients are exempt assuming they are not significantly impaired.
On the cannabidiol front, which is a significant market in Germany, Prohibition Partners says current regulations are complex and inconsistently enforced. However, proposed regulations aim to remove the intoxication clause from Germany’s Narcotics Act, which has proved to be a sticking point and created uncertainty for stakeholders.
The impact of CanG and related changes will have effects beyond Germany.
“The changes currently taking place in Germany are hugely significant for the European and global cannabis industries,” says Prohibition Partners “The relative success or failure of the new policies will have a tangible impact on both the pace and shape of reform elsewhere.”
The full Prohibition Partners report and a free version of it can be accessed here.
